Allied Blenders shares dive 9%; company clarifies on 'unfair trade practices'

Allied Blenders and Distillers Ltd shares on Tuesday tanked 9.43 per cent to hit a low of Rs 288. The stock recovered some lost ground and was last seen trading 3.46 per cent down at Rs 307. This came after the breweries issued a clarification related to "unfair trade practices" in Andhra Pradesh, calling it 'incorrect'.

"This is to inform you that there have been certain media reports alleging that Allied Blenders and Distillers Ltd (ABD) has been involved in unfair trade practices in the State of Andhra Pradesh. In this regard, we would like to hereby clarify that the Company has not received any communication from banks or from any regulatory authorities or enforcement agencies regarding such action. Hence, this news is speculative and factually incorrect," the company stated in a BSE filing.

"ABD has always operated in full compliance with the law and maintains highest standards of transparency and corporate governance. For any clarifications or official updates, stakeholders are encouraged to rely solely on communications made directly by the Company or published through official stock exchange platform," Allied Blenders added.

On technical setup, the scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-day and 150-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 55.52. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 72.26 against a price-to-book (P/B) value of 6.02. Earnings per share (EPS) stood at 4.27 with a return on equity (RoE) of 8.34.

Allied Blenders saw heavy trading volume on BSE as around 1.73 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 25,000 shares. Turnover on the counter came at Rs 5.23 crore, commanding a market capitalisation (m-cap) of Rs 8,672.41 crore.

As of December 2024, promoters held an 80.91 per cent stake in the company.