The question to ask is - is this worth the risk? Basically the information here is very limited. Company is not signaling any intent to grow...whereas other players are moving towards premiumization and trying to increase their market.
IMO, Concentration in one state is a major risk. Although I doubt Maharashtra will be banning alcohol, the low-value desi alcohol can face some regulatory challenges !!
Absolutely, as an investor I wouldn’t want to park my money in a company where the management doesn’t have any ambitions to grow. However, it’s got a steady business.
Maharashtra wouldn’t ban alcohol because they make a LOT of money from taxes, so the incentives are aligned against banning.
Like I said, the only bet you can take on GMB, is to hope some local player acquires it in the future.
True, though not a multi-bagger — it can still generate returns in the range of 10-20% with minimal risk. For risk averse investors, that’s not a bad bet.
And then there’s also a gamble that a domestic spirits company might acquire them in the future.
The question to ask is - is this worth the risk? Basically the information here is very limited. Company is not signaling any intent to grow...whereas other players are moving towards premiumization and trying to increase their market.
IMO, Concentration in one state is a major risk. Although I doubt Maharashtra will be banning alcohol, the low-value desi alcohol can face some regulatory challenges !!
Absolutely, as an investor I wouldn’t want to park my money in a company where the management doesn’t have any ambitions to grow. However, it’s got a steady business.
Maharashtra wouldn’t ban alcohol because they make a LOT of money from taxes, so the incentives are aligned against banning.
Like I said, the only bet you can take on GMB, is to hope some local player acquires it in the future.
If it's not a multibagger, then why invest for measly returns for a risk of investing in a small cap
True, though not a multi-bagger — it can still generate returns in the range of 10-20% with minimal risk. For risk averse investors, that’s not a bad bet.
And then there’s also a gamble that a domestic spirits company might acquire them in the future.