Mohan Meakin Unlisted Shares
Buy - ₹2090.00
Sell - ₹2195.00
About Mohan Meakin Unlisted Shares
1. About the Company
Mohan Meakin Limited has a rich history that dates back to 1855 when Edward Dyer established a brewery at Kasauli, marking the beginning of India’s modern brewing industry. This pioneering effort by Edward Dyer revolutionized the way beer was brewed and consumed in India. Over time, another brewing visionary, H.G. Meakin, brought his expertise from Burton-on-Trent, England, to India and expanded the brewing network, acquiring multiple breweries across the country.
By the 20th century, both companies merged to form Dyer Meakin & Co. Ltd., later evolving into Mohan Meakin Limited in 1966. Under the leadership of Padamshree N.N. Mohan, the company expanded further into manufacturing units for distilleries, breweries, and other products. The company diversified into the food and beverage industry, producing fruit juices, breakfast foods, and even mineral water. With such a strong legacy and diverse interests, Mohan Meakin is a major player in India’s liquor, food, and beverage industry.
2. Business Divisions
Mohan Meakin operates in a variety of industries, but its core focus remains on the brewing sector. Here are the primary business divisions:
- Brewery and Distillery:Â Mohan Meakin has been a household name in the brewing industry for over a century. It produces a wide range of alcoholic beverages, including iconic brands like Old Monk Rum and other spirits, alongside a variety of beers.
- Food and Beverages:Â The company has strategically diversified into producing fruit juices, breakfast foods, and packaged foods. These products are marketed under trusted brands, helping the company reach broader consumer segments.
- Mineral Water and Glass Factory:Â The company also produces and markets mineral water, as well as glass containers, reinforcing its position in the consumer goods sector.
- Engineering and Other Manufacturing Units: In Mohan Nagar (U.P.), the company has set up a large industrial hub that includes manufacturing units for ice, cold storage, malt houses, and engineering works, further diversifying its business interests.
3. Financial Highlights
Mohan Meakin’s financial performance in recent years has been strong, with steady revenue growth and robust profitability. Here are the key financial highlights:
- Revenue Growth: In FY23, Mohan Meakin achieved a revenue of ₹1,771 crores, reflecting a growth of approximately 29.7% compared to the previous year. This is a clear indicator of the company’s increasing market demand and ability to expand its consumer base.
- Profit After Tax (PAT): In FY23, the company reported a PAT of ₹67 crore, a significant increase from ₹52 crore in FY22. This represents a growth of over 29%, demonstrating its strong operational execution and cost management.
- Earnings Per Share (EPS): The company reported an EPS of ₹78.82 in FY23, reflecting healthy profitability and growth for its shareholders. The increase in EPS is indicative of the company’s successful business strategies and solid financial management.
- Debt-Free Status:Â Mohan Meakin remains a virtually debt-free company, with a very low debt-to-equity ratio of just 0.01. This provides the company with flexibility and enables it to focus on strategic growth without the pressure of significant debt obligations.
- Return on Equity (ROE): The company achieved a strong ROE of 24% in FY22, a solid indicator of its efficient use of equity capital to generate profits. An ROE above 20% is generally considered excellent, showcasing the company’s operational efficiency.
Mohan Meakin Unlisted Shares: Investment Potential
Mohan Meakin Unlisted Shares have become an attractive investment option due to the company’s strong financial performance and consistent growth trajectory. As of FY23, the unlisted share price of Mohan Meakin is ₹1,450 per share, with a P/E ratio of 18.4x, which is relatively reasonable compared to its industry peers. The company’s solid earnings growth, debt-free status, and ability to generate healthy free cash flow make Mohan Meakin Unlisted Shares a potentially rewarding investment for long-term investors.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
Pros
- Strong Brand Legacy: Over 150 years of brand recognition boosts customer loyalty and market position.
- Diversification into Multiple Sectors: Reduces dependency on alcohol sales, providing stability across various industries.
- Financial Strength: Debt-free status ensures financial flexibility and resilience.
Cons
- Dependence on Alcoholic Beverages: Heavy reliance on alcohol sales exposes the company to regulatory changes and shifting consumer preferences.
- High Competition: Intense competition in food, beverage, and brewing sectors makes differentiation challenging.
- Fluctuating Raw Material Costs: Price volatility in raw materials impacts production costs and profitability.
