The company which takes the lead in ushering in quarterly results, kept up with the tradition and declared its Q3FY14 numbers yesterday. More than the numbers, the market was awaiting the bonus issue ratio. Hoping for a 1:1, the market was disappointed when the company declared bonus in 1:4 ratio, which is one share of Rs 10 each for every four shares of Rs 10 each held. Consequently, the stock tanked big time today and breached the 10% lower circuit.

On the results front, the company ended FY14 on a very high note, with net profit coming in at Rs.21 crore, compared to Rs.13 crore in FY13, a spirited 61% jump though this was on a flat rise in net sales at Rs.289 crore v/s Rs.288 crore in FY13. What really helped was the lower operating cost, down 4%. Yet, the market has chosen to ignore these good numbers completely and sulk over its bonus disappointment.

The company is engaged in the activities of manufacturing and marketing of Alcoholic Beverages; such as Country Liquor (CL) and Indian made Foreign Liquor (IMFL). It  is the largest manufacturer of country liquor in the state of Maharashtra with a sizeable market share. Its brands are GM Santra, GM Limbu Punch, GM Dilbahar Sounf and GM Doctor. The company is essentially is a “country” liquor maker and thus has a huge customer base though margins are lower than the other big branded liquor companies, which is made up through higher volumes. Promoters hold 73.12% stake.