GM Breweries is trading down 2.6% at Rs. 80 per share, post announcement of Q2 results yesterday afternoon. A thinly traded stock with market cap of Rs. 75 crore, the share has 52 week high/low of 55 and 101.4 on the BSE.

The Mumbai based country liquor (CL) and Indian made foreign liquor (IMFL) manufacturer kick-started Q2 earnings season with good set of numbers. While revenues were up 4.8% QoQ to Rs. 70 crore in Q2FY14, PAT was up by 11.6% QoQ to Rs. 5.9 crore. Net profit for the first half of FY14 stood at Rs. 11.2 crore, as compared to Rs. 12.8 crore profit for whole of FY13. EPS for H1FY14 stands at Rs. 11.9 vis-à-vis Rs. 14.9 for FY13.

Company is likely to close FY14 with topline of Rs. 280 crore and EPS of Rs. 24, which discounts the share price by PE multiple of 3.4 times. However, its small size and limited presence are deterrents in relation to other listed peers, due to which good results have failed to enthuse the market.