Nomura gives ABD buy, ₹850 target citing premium push
Business
Nomura just gave Allied Blenders and Distillers (ABD) a "Buy" rating, setting a target price of ₹850, about 19% higher than where it closed last.
They're betting on ABD's push for more premium products and smarter production, plus some help from the India-UK free trade deal to boost profits.
ABD seen posting 30% EPS CAGR
Nomura thinks ABD's focus on premium drinks will really pay off, expecting profit margins to jump by over 300 basis points and earnings per share to grow at 30% annually from FY26 to FY29.
The stock is trading at what Nomura calls a competitive valuation for its sector.
For context, Jefferies set a lower target earlier in June but also saw strong growth potential thanks to new products and better execution.