GM Breweries has been consistently breaching the upper circuit; yesterday it hit the ceiling at Rs.158.45. Today, it opened much higher at Rs.160 levels and went on to hit a new high at Rs.172.40.

The stock has been zooming up since the company announced on 28^th March that its Board will meet on 3^rd April for consideration of bonus, the same day when it will announce its Q4/FY14 numbers.

Financially, for third quarter ended 31^st Dec 2013, QoQ, the performance had slipped. The company did show a 10% rise in net revenue at Rs.77 crore but a 15% rise in operating expenses led to the company end the quarter with a 33% drop in net profit at Rs.4 crore. But the company seems to be heading onto a good track in current fiscal. It ended 9MFY14 with a net profit at Rs.15.5 crore and this has already surpassed that for 12MFY13 net profit of Rs.13 crore.

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. The company‘s equity base is at Rs.9.36 crore and reserves stands at Rs.86.36 crore. Promoters hold 73.12% stake.