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Investing.com - Jefferies initiated coverage on Allied Blenders (ABDL:IN) with a Buy rating and a price target of INR620.00 on Monday.
The research firm cited Allied Blenders’ ongoing turnaround strategy, which includes portfolio expansion, entry into super-premium and luxury segments, and investments in backward integration.
Jefferies noted that while Allied Blenders has faced challenges in the past due to a concentrated portfolio centered on Officer’s Choice, input inflation, and a weak balance sheet, fiscal year 2025 initiatives have begun yielding results with improved growth and profitability.
The firm acknowledged some areas still need improvement, specifically weak trends beyond the ICONiQ White product and high receivables, but emphasized the company’s strong growth momentum.
Jefferies projects Allied Blenders can deliver double-digit growth with meaningful margin expansion, describing the company as a "dark horse" with significant upside potential based on good execution, with the price target representing 18% upside and 44x September 2027 earnings per share.
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