Tilaknagar Industries’ Stock Jumps 17% Following Strong Performance and Growth Projections
Shares of Tilaknagar Industries surged by 17%, reaching a record high of Rs 341.9 on Tuesday, November 5. This sharp rise came after the company reported impressive financial results for the September quarter and shared optimistic projections for the future, including a forecasted revenue of over Rs 1,300 crore for the financial year 2024-25.
In an interview with CNBC-TV18, Amit Dahanukar, the company’s Managing Director, expressed confidence that the second half of the fiscal year would see even stronger growth, driven by strong sales. He emphasized the company’s focus on markets in Andhra Pradesh and Telangana, which together account for about half of Tilaknagar’s total sales. Dahanukar also highlighted a 10% increase in the number of stores in Andhra Pradesh, further strengthening its market presence.
Strong Financial Growth
For the September quarter, Tilaknagar reported a 5.8% year-on-year increase in revenue, reaching Rs 374.8 crore. The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) saw a remarkable 39.1% rise, hitting Rs 66 crore. This translated to an improvement in EBITDA margins, which rose by over 400 basis points to 17.6%, compared to 13.4% during the same period last year. The company also saw a 3.1% increase in sales volume, with 31 lakh cases of liquor sold during the quarter. This boost, combined with cost reductions, led to a 57% year-on-year increase in profits.
Dahanukar is optimistic that the company can maintain a margin of around 15.5% for the rest of the fiscal year, excluding any one-time adjustments or incentives.
Stock on the Rise in 2024
Tilaknagar’s stock has been performing exceptionally well this year, up 41% so far in 2024. This is part of a strong trend for the company’s stock, which has posted impressive returns over the past few years: 123% in 2020, 213% in 2021, 18% in 2022, and 118% in 2023. These strong gains have attracted attention from both retail and institutional investors.
Expansion Plans
While Andhra Pradesh and Telangana remain core markets for Tilaknagar, Dahanukar noted that the company is exploring expansion opportunities in other parts of India to increase its brand visibility and diversify its consumer base.
A Strong Portfolio of Liquor Brands
Tilaknagar, originally founded in 1933, is one of India’s leading manufacturers of Indian Made Foreign Liquor (IMFL) and Extra Natural Alcohol. The company’s portfolio includes several well-known brands, such as:
- Mansion House Brandy: A premium brandy
- Courier Napoleon Brandy: A popular brandy
- Senate Royale Whisky: A high-end whisky
- Madiraa Rum: A famous rum brand
- Blue Lagoon Gin: A popular gin
Tilaknagar’s production facility in Shrirampur, Maharashtra, has a capacity of 150 kilolitres per day. Recently, the company launched Mansion House Green Apple Flandy, a flavored brandy that quickly gained 20% market share in its first quarter.
With a strong portfolio, consistent growth, and plans for expansion, Tilaknagar Industries is well-positioned for continued success. As the winter season—traditionally a peak time for liquor consumption—approaches, the company’s outlook remains positive, and investors will be watching closely to see how it capitalizes on this momentum in the months ahead.
