Up 3,000% in 6 yrs! Ventura initiates coverage on multibagger stock, sees more steam left

Domestic brokerage firm Ventura Securities has initiated coverage on multibagger stock Tilaknagar Industries (TIL), which has zoomed as much as 3,000 per cent in the last six years. Ventura sees the alcohol beverage maker to hit new highs in the next 24 months, as it sees the company  undergoing a significant transformation.

Tilaknagar Industries is shifting away from a brandy-dominated portfolio into whisky, the fastest-growing and largest segment within the Indian made foreign liquor (IMFL) market. Ventura said that this strategy not only retains stable brandy cash flows but also leverages its new pan-India distribution network, which is expected to improve execution, premium scaling, and portfolio mix.

Tilaknagar Industries is engaged in the manufacturing, branding, and distribution of IMFL across brandy, whisky, gin, rum, and vodka. It operates through owned as well as third-party bottling units, maintains a strong southern India focused sales and distribution network.

It focuses on premium and prestige & above segments led by flagship brandy brands Mansion House and Courrier Napoleon as well as the newly acquired Imperial Blue Whisky, while expanding into luxury and super premium categories through organic launches and strategic partnerships.

Ventura Securities notes that TIL’s acquisition of the Imperial Blue franchise marks a key strategic inflection for the business. This acquisition may enable portfolio diversification and better alignment with the broader industry trend of premiumisation. TIL’s 21.4 per cent stake in Spaceman Spirits Lab exposes it to the emerging premium and craft segments, favored by young consumers.

Ventura Securities pencils Tilaknagar Industries' revenue, ebitda and net profit CAGR at 54.4 per cent, 44 per cent, and 11.1 per cent, reaching to Rs 5,279 crore, Rs 762 crore and Rs 315 crore, respectively by FY28. The ebitda margin is expected to moderate by 270 basis points to 14.4 per cent, while the net profit margin is likely to stabilise at 6 per cent post-acquisition.

Shares of Tilaknagar Industries settled at Rs 428.65 on Monday, falling 5.57 per cent. The stock has tumbled more than 22 per cent from its 52-week at Rs 550, hit in October 2025. Despite this correction, the stock has zoomed nearly 3,000 per cent from its value around Rs 14.30 in March 2020. The stock has turned an investment of Rs 10,000 into Rs 3 lakh during the period.

Ventura expects ROE and ROIC to moderate to 13.9 per cent and 14.1 per cent. The near-term margins may face some pressure, but the brokerage believes that scale, operating leverage, and a diversified portfolio will support continued earnings and cash-flow growth. TIL's balance sheet remains net-cash positive, which is expected to offset margin dilution from the acquisition.

Competitors in the Indian alcoholic beverages industry include United Spirits, Radico Khaitan, and Allied Blenders & Distillers, all of whom are also pursuing premiumisation strategies. The proposed India-UK free trade agreement, expected to lower import duties on Scotch, could further support gross margins and competitiveness in premium segments, said Ventura.

"We initiate with a buy for a price target of Rs 598 over the next 24 months," Ventura added, suggesting a nearly 40 per cent uspide in the stock. It has cited delayed benefits from merger integration and state level excise or taxation changes could lead to near-term volatility in volumes and realizations as key risks to its estimates.