Jagatjit Industries

Jagatjit Industries Limited (JIL) was set up in 1944 under the patronage of Maharajah of Kapurthala. It is one of the largest alcoholic beverage breweries and manufacturer of dairy products in India. It sells IMF liquor under the brand of Aristocrat and many other. It has a malted drink – Compleat . The company had its brand, Maltova, which it sold off to SmithKline.  The company has discontinued its packaging business. The company has been making losses consistently and is in the process of streamlining its portfolio. It plans to focus on only its three brands – Aristocrat Premium, AC Black and IICE Vodka, wanting to make them into ‘aspirational brands.’

For now, nothing seems to have really worked in its favor. The company, for Q2FY17 posted a loss of Rs.30 crore and this was on a 26% lower total income at Rs.131 crore , where once again expenses outstripped the income earned at Rs.149 crore. Its expenses also included Rs.14 crore as loss of sale of fixed assets – hiving off its packaging unit.

Its beverages vertical posted a 31% drop in revenue which also included a rental income of Rs.7 crore. It had a loss at EBIT level of Rs.14 crore.

The company’s borrowings have gone up 9% (YoY) at almost Rs.280 crore. The only reason why this loss making company enjoys a market cap of Rs.300 crore and price of around Rs.70 is because of its land bank.