Empee Distilleries gallops almost 40% in five sessions

Empee Distilleries was locked at 5% upper circuit at Rs 46.10 at 14:19 IST on BSE, with the stock extending recent rally triggered by the company entering into a manufacturing agreement with United Spirits.

Meanwhile, the S&P BSE Sensex was up 260.40 points or 1.4% at 18,880.12.

On BSE, 1,194 shares were traded in the counter as against average daily volume of 17,572 shares in the past one quarter.

The stock opened with a upward gap, surging by the maximum 5% daily circuit and remained locked at the 5% level at Rs 46.10 so far during the day. The stock had hit a 52-week high of Rs 96.25 on 15 November 2012. The stock had hit a record low of Rs 29.80 on 22 August 2013.

The stock had outperformed the market over the past one month till 30 August 2013, surging 22.59% compared with the Sensex's 3.77% fall. The scrip had, however, underperformed the market in past one quarter, declining 31.65% as against Sensex's 7.89% fall.

The small-cap liquor maker has equity capital of Rs 19 crore. Face value per share is Rs 10.

Shares of Empee Distilleries have rallied 39.48% in five trading sessions from Rs 33.05 on 26 August 2013, after the company during trading hours on 27 August 2013 said it has entered into an agreement with United Spirits for manufacture of Indian Made Foreign Liquor (IMFL) for distribution in Karnataka. Empee Distilleries said that the manufacturing will be undertaken at its unit at Kolar District in Karnataka and will improve the top line and bottom line growth of the company. The agreement entered with United Spirits will initially be for a period of three years.

Empee Distilleries' net profit fell 73% to Rs 1.60 crore on 7.7% decline in net sales to Rs 141.04 crore in the quarter ended 30 June 2013 over the quarter ended 30 June 2012.

Empee Distilleries' principal activity is the manufacture and sale of IMFL. The products of the company are developed in-house. The product portfolio includes premium whisky, brandy, rum and vodka for the local market. The company has manufacturing plants spread out over the southern states and they have a combined capacity of around one million cases on an average per month. The company also manufactures industrial alcohol and is engaged in the business of power generation. Empee Distilleries is also actively pursuing emerging technologies in the renewable sector.

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