The company has been expanding its portfolio with premium brands and international markets, though legal hurdles and high valuations continue to weigh on investor sentiment.
Allied Blenders & Distillers (ADBL) remains in a broad uptrend, with the stock consistently taking support on its rising trendline.
Technical View
SEBI-registered analyst Pradeep Carpenter pointed to a double-bottom continuation pattern with neckline resistance at around ₹540, aligned with a rectangle consolidation zone.
Initial indications suggest an increase in momentum with relative strength index (RSI) bouncing off the midline and breaking out of the recent downtrend. In addition, the stock is currently trading well above its 100- and 200-day moving averages, a sign that suggests the long-term trend remains positive.
In the near term, ₹540 is the key resistance while ₹517 and ₹495 are the key supports to watch.
Earnings And Growth
Carpenter noted that the company posted a strong Q1 FY26, with consolidated net profit of about ₹55–56 crore, nearly four times higher year-on-year, on revenue of roughly ₹1,776 crore.
The earnings momentum was fueled by premium product sales and improved realizations.
Strategic Moves
The company has been expanding its distribution network and scaling its international footprint, growing from around 14 to 27 countries.
ABDL also acquired UTO Asia Pte. Ltd. to secure rights to Mansion House and Savoy Club brands, though a Bombay High Court interim order has restricted their launch in India for now.
Carpenter highlighted that ABDL opted out of acquiring Good Barrel Distillery, showing management’s selective approach to acquisitions.
Positives And Risks
Carpenter underscored positives such as breakout potential from a strong technical pattern, earnings momentum, and expansion into new markets.
At the same time, risks include elevated valuations with a price-to-earnings multiple above 70x and a price-to-book ratio of 9x, as well as legal restraints on new brands and high working capital requirements.
He said a breakout above ₹540 could open room for further upside, while the ₹495 zone remains critical support on the downside.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘extremely bullish’ amid ‘extremely high’ message volume.
Allied Blenders & Distillers’ stock has risen 23% so far in 2025.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
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