Get Magazines for free

Categories

10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Please note

Note: The artciles are not research reports but assimilation of information available on public domain and it should not be treated as a research report.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that I might have the dkiscussed companies in my portfolio and hence my point of view can be biased.Readers should consult registered consultants before making any investments
.

Archives : Old artciles

Tuesday, April 28, 2009

Empee Distilleries Ltd:-Future outlook and prospects

Scripscan:Empee Distilleries Ltd
cmp:60
Traded in:Nse-bse

Story:Empee Distilleries manufactures and bottles Indian-made foreign liquor (IMFL) and has manufacturing and sales bases in Tamil Nadu and Andhra Pradesh.While the Tamil Nadu unit of Empee operates at near capacity, capacity utilisation at the Kerala plant is less than 50%. This is on account of the competition from low-priced brands available in the Kerala market, forcing the company to cut down on production at its unit there. The company plans to tackle the issue by entering into the premium segment.It needs to be seen whether the strategy will be successful as high taxes in Kerala make premium brands unaffordable to most consumers.Empee operates in a government-regulated sector with a high potential of volume growth but low profitability.It sells liquor through state government agencies. Even though the company claims that such arrangements reduce its marketing costs and improves its working-capital cycle, it doesn''t reflect in its margins. Its operating margin is slightly lower than its bigger peers including United Spirits, Radico Khaitan and Jagatjit Industries. This may be on account of higher raw material costs.The company plans to expand existing capacity in Tamil Nadu and add new capacity in Andhra Pradesh. This will help it to augment its presence in these two markets. However, it is essentially a regional player compared to its peers who enjoy a pan-India presence with higher mindshare of their brands among customers.Its new initiatives in realty and power sector will take time to mature.The IMFL sector is rapidly growing in India and is expected to continue its momentum. Companies with strong brand recognition and all-India presence are better positioned to take advantage of this opportunity.Investors interested in this sector may consider other well-established companies in this sector.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
 
x

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner