Mohan Meakin Yearly Result Update- 27.05.2019

UZ Financial Review

1. The company has shown a robust growth of 44.45% in terms of Revenue in FY18-19 as compared to last year.

2. The company has shown a robust growth of 120 % in terms of PAT in FY18-19 as compared to last year.

3. The Operation Margins have gone up to 6% in FY18-19 as compared to 3.05% last year. Excellent figures.

4. The Debt has gone down from 30 Cr last year to 11 Cr this year. So the Balance sheet is getting strong.

5. The Net-Worth has gone up to 92 Cr in FY18-19 from 58 Cr last year.

6. Current ratio this year has improved to 1.26 as compared to 1.05 last year. So the Balance sheet is getting strong.

7. The Company has shown a consolidated EPS of 39 in FY18-19 as compared to 18 last year.

So overall we can conclude that the company has given a strong set of numbers. The Alcoholic segment has given stellar 46% growth which is a good sign.

Post results, the Valuation in terms of P/E multiple of 14x looks quite reasonable, as compared to listed player United Spirits and United Breweries which are trading at P/E multiple of 55x and 63x respectively. Though strict comparison can’t be made as both these companies are having Mcap of around 39000 Cr whereas Mohan Meakin has Mcap less than 500 cr. Plus the Mohan Meakin Sales is more around Old Monk while United Spirits is having wide portfolios of Whiskies, Rums, and Vodkas. The United Breweries has captured the Indian beer market with Kingfisher Brand having 50% market share.