ICICI Securities has given Allied Blenders and Distillers Limited a "BUY" rating and set a target price of Rs 400. The company is well-positioned to take advantage of the premiumisation trend in the alco-beverages sector, particularly through new product launches in the Prestige & Above (P&A) segment.

The ICONiQ White Whisky is expected to double its volume year-on-year by FY25, and additional launches in premium and luxury categories are expected to drive revenue growth. Allied Blenders is also focused on optimizing its state brand mix to drive profitable growth for Officer’s Choice Whisky. The company is pursuing backward integration for its own Extra Neutral Alcohol (ENA) manufacturing, which, along with premiumisation efforts and operating leverage, is projected to increase operating margins by approximately 170 basis points from FY25 to FY27.

ICICI Securities forecasts a revenue and EBITDA compound annual growth rate (CAGR) of 10% and 30%, respectively, from FY24 to FY27. However, there are risks associated with potential regulatory changes in critical states and challenges in scaling up the P&A segment.