During Monday’s trading session, the shares of this small-cap company engaged in the business of manufacturing and sale of alcohol hit a 20 percent upper circuit at Rs. 954.05 on BSE.
Stock Performance
With a market cap of Rs. 2,738 crores, at 03:00 p.m., the shares of Globus Spirits Limited were trading in the green at Rs. 947.8, up by around 19.2 percent, as compared to its previous closing price of Rs. 795.05.
The stock has delivered positive returns of nearly 17.3 percent of returns in one year, as well as around 13.7 percent returns in the last six months. Meanwhile, the shares of Globus Spirits have gained by around 7.7 percent in the last one month.
What’s the News
According to the latest regulatory filings with the stock exchanges, Globus Spirits Limited announced that the Ministry of Consumer Affairs, Food & Public Distribution, has notified about reducing the price of rice supplied to ethanol distilleries.
In an effort to boost ethanol production, the Ministry of Consumer Affairs, Food & Public Distribution, lowered the price of rice from Rs. 28 per kg to Rs. 22.5 per kg, as stated in their notice dated January 17, 2025.
This reduction is expected to enhance cost efficiency for distilleries. Since certain types of spirits are produced using rice or its by-products, the reduced rice price can help lower raw material costs, thereby decreasing overall production expenses for companies like Globus Spirits.
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Related News
On 17th January, the centre reduced the reserve price of Food Corporation of India (FCI) rice under the Open Market Sale Scheme to Rs. 2,250 per quintal. This move aims to promote sales and support food security initiatives.
As per the directive, ethanol producers are permitted to buy up to 24 lakh tonnes of rice at this reduced price, a policy effective until 30th June 2025.
Additionally, the ministry has instructed that the third round of tenders for ~110 crore litres of ethanol in FY25 should prioritize the use of FCI rice, with a particular focus on older stock that is feasible, according to NDTV Profit.
Financials
Globus Spirits reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 12.5 percent, rising from Rs. 638 crores in Q2 FY24 to Rs. 567.2 crores in Q2 FY25.
In contrast, the company’s net profit decreased from Rs. 131 crores to Rs. 16 crores over the same period, representing a massive decline of around 88 percent YoY.
On a year-on-year basis, the consolidated EBITDA decreased from Rs. 41 crores in Q2 FY24 to Rs. 32.3 crores in Q3 FY25, registering a decline of 21.5 percent YoY, while the company’s EBITDA margins fell to 5 percent from 7 percent, over the same period.
About the Company
Globus Spirits Limited is primarily engaged in the business of manufacturing and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), bulk alcohol, hand sanitiser and franchise bottling.
Written By – Shivani
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