Mohan Meakin Share Price in Unlisted Stock Market in India 2024

Mohan Meakin Ltd is one of the oldest and most renowned liquor companies in India. Founded in 1855, the company has a long and rich history spanning over 160 years. Mohan Meakin is engaged in the manufacturing, sale and distribution of alcoholic beverages such as beer, whisky, rum, brandy, and vodka. Some of its popular brands include Old Monk, Golden Eagle, Diplomat, Colonel’s Special, and Solan No. 1. In this blog, Get the latest Mohan Meakin Share Price and stock performance, stay updated on the company’s financial health, stock valuation and more on Mohan Meakin Share Price.

As an unlisted public company, the shares of Mohan Meakin are not traded on any stock exchange. However, the shares can be bought and sold in the unlisted share market. In this blog, we will provide a comprehensive analysis of Mohan Meakin’s business, financial performance, valuation, investment potential, risks, and comparison with competitors to help readers make an informed decision on whether to invest in the company’s unlisted shares.

Company Overview

Mohan Meakin Ltd was incorporated in 1855 by Edward Dyer and Colonel Narendra Nath Mohan in Kasauli, Himachal Pradesh. Dyer was a British civil servant while Mohan was the grandson of the Nawab of Farrukhabad. The company was initially set up to supply beer to the British troops stationed in India.

Over the decades, Mohan Meakin expanded its portfolio and emerged as one of the country’s leading manufacturers of alcoholic beverages. The company set up large production facilities in Solan (Himachal Pradesh), Lucknow (Uttar Pradesh), and Ghaziabad (Uttar Pradesh).

Some key milestones in Mohan Meakin’s 160-year corporate journey include:

• 1855: Incorporated as Dyer Meakin Breweries in Kasauli, HP
• 1937: Launched Old Monk rum, which would become the company’s flagship brand
• 1949: Started bottling operations for Coca-Cola in India
• 1960s: Launched popular brands like Golden Eagle beer and Diplomat Deluxe whisky
• Mid 1990s: Old Monk became India’s largest selling rum brand
• 1999: Formed a joint venture with United Breweries and transferred brands like Golden Eagle, Solan No.1 to the JV
• Early 2000s: Launched an array of new brands like Colonel’s Special whisky, Big Boss vodka, etc.

Today, Mohan Meakin is one of the oldest companies in India. It has strong brand legacy in the liquor industry.

Business Overview

Mohan Meakin operates in the alcoholic beverages segment. It has a diverse portfolio spanning beer, rum, whisky, brandy, vodka, and gin. Some of its major brands are:

• Old Monk: Dark rum brand, launched in 1954. It became India’s top rum brand.
• Diplomat Deluxe: Blended whisky brand launched in the 1960s. It is one of the company’s flagship whisky brands.
• Meakin 10000: Premium beer brand launched in the 1960s. It is known for its high alcohol content.
• Solan No. 1: Strong beer brand originally brewed in Solan, HP. Now produced by a JV between Mohan Meakin and United Breweries.
• London Dry Gin: Premium gin brand.
• Colonel’s Special: Economy segment whisky brand launched in the 2000s.

Mohan Meakin has a nationwide distribution network spread across India. As per reports, it has a presence in 29 states with 180 distributors and over 48,000 retail outlets selling its brands.

The company has manufacturing facilities located in Solan (HP), Lucknow (UP), and Ghaziabad (UP). The installed production capacity across its units is over 100 million cases per year.

Mohan Meakin follows a B2B business model, selling its products primarily to distributors, government corporations, canteen stores department, and retail outlets across India. The end consumers are people who drink these beverage products.

Principal Business Activities

The principal business activities of Mohan Meakin are:

• Manufacturing alcoholic beverages: Mohan Meakin owns manufacturing facilities to produce beer, rum, whisky, brandy, vodka, and gin under its various brands.

• Branding and marketing: The company undertakes branding, advertising, and marketing initiatives to promote its brands.
• Distribution and logistics: Mohan Meakin has a distribution network to deliver its products across 29 states in India. It also manages logistics for raw materials.
• Sales and business development: The sales team works on increasing product penetration, scaling up existing markets, and developing new business opportunities.

Segment Revenue

Mohan Meakin operates in a single business segment – alcoholic beverages. As per recent media reports, the annual revenue mix is:

• Beer segment – 30-35% of revenues
• Rum segment – 25-30% of revenues
• Whisky segment – 25-30% of revenues
• Other spirits like brandy, vodka, gin etc. – 5-10% of revenues

So while Mohan Meakin has a portfolio of different beverage types, majority of its revenues come from the top three categories of beer, rum and whisky. The Old Monk rum brand is the company’s flagship brand contributing significantly to revenues.

Understand the Concept of Unlisted Shares

Unlisted shares refer to the shares of a public limited company that are not listed or traded on any major stock exchange like NSE or BSE. The shares continue to be traded in the unlisted share market. Here is an overview of key aspects related to unlisted shares:

• Unlisted shares are securities that are issued by a public limited company but not listed on a stock exchange due to non-fulfillment of listing requirements.
• The shares can still be bought or sold in the unlisted share market. The company remains a public limited entity.
• Promoters/shareholders can choose to not list shares to avoid regulatory oversight or if they prefer limited private capital.
• No live trading price is available. Lack of liquidity is a risk.

Evolution of the Unlisted Share Market

• In older times, promoters resisted listing to maintain control and avoid disclosures.
• Gradually, platforms emerged to buy/sell unlisted shares like OTC trades or private transfers.
• With Internet platforms, the unlisted share market has become more organized in recent times.
• Investors have higher access. But research, valuations and negotiations still required.

Process for Buying/Selling Unlisted Shares

• Physical shares need to be transferred as per company policies and regulatory norms.
• Investors have to conduct own research and due diligence. No standard valuations.
• Various platforms provide access to buy/sell unlisted shares like UnlistedZone, UnlistedArena etc.
• Buyers and sellers have to negotiate based on prices/valuations that work for both parties.
• Brokers like UnlistedZone also help to bring buyers and sellers together for deal closure.

So in summary, the unlisted share market has opened up avenues for investors to buy/sell shares in unlisted companies. But significant due diligence is required before investing.

Company Details

Mohan Meakin is amongst the oldest companies in India with a rich history since 1855. Here we explore the company’s founding and growth journey:

Founding Story

• Mohan Meakin was founded in 1855 by Edward Dyer and Colonel Narendra Nath Mohan.
• Dyer was a British brewer while Mohan was related to the Nawab of Farrukhabad.
• The company was started to supply beer to British troops in India under the banner Dyer Meakin Breweries.
• It established its first brewery in Kasauli, Himachal Pradesh to produce beer.
• The company came to be known as Dyer Meakin & Co. It expanded to other locations over the decades.

Corporate Journey

• In 1937, Mohan Meakin launched its flagship Old Monk rum brand that became a runaway hit.
• By 1949, it started bottling operations for Coca Cola in India.
• In the 1960s, it launched popular whisky brand Diplomat and strong beer brand Meakin 10000.
• Old Monk became one of India’s top selling rums with 7 million cases per year by the 1990s.
• In 1999, Mohan Meakin formed a JV with United Breweries and transferred brands like Golden Eagle, Solan No.1.
• In recent years, new brands like Colonel’s Special whisky and Big Boss vodka have been launched targeting various consumer segments.

So over its 160+ year journey, Mohan Meakin has established itself amongst the leading liquor companies in India. Its flagship rum brand Old Monk became a legendary household name. The company continues to thrive under the stewardship of the Mohan family even today.

Financial Performance

As an unlisted company, the financial results of Mohan Meakin are not publicly disclosed at regular intervals. However, as per limited information available, we take a look at the company’s recent financial performance:

• Mohan Meakin reported a topline of Rs 1,200-1,300 crore in FY 2020-21 as per media reports.
• Revenues declined in FY 2020-21 due to the downturn during the pandemic and closure of retail outlets.
• However, the company managed operationally breakeven performance despite the challenging environment.
• With the economy opening up and festive season demand, H1 FY 2022 revenues rebounded to Rs 800 crore as per reports.
• EBIDTA margins are estimated to be in the range of 22-25% in the past few years.
• As an unlisted firm, Mohan Meakin has flexibility of moderating dividend payouts during volatile periods to conserve cash.

So while exact P&L figures are unavailable, various media reports and interviews suggest Mohan Meakin has shown resilience during the pandemic. With festive sales, FY 2022 performance seems to be improving. Margins are healthy due to its premiumisation drive across key brands.

Profitability Analysis

Though exact profit figures are unknown, we can make some general observations about Mohan Meakin’s profitability:

• Gross Margin – Estimated to be around 45-50% due to premium brand portfolio
• Operating Margin – Estimated to be around 20-25% due to production efficiencies
• Net Profit Margin – Probably in high single digits during pandemic affected years
• ROCE – Probably around 16-20% pre-pandemic showcasing efficient capital deployment
• ROE – In the range of 14-18% in preceding years as per market sources

So while the company’s profitability was impacted during the pandemic due to external environment, historically its margins and return ratios have been at healthy levels showcasing strong brand equity and execution.

Debt Position

Based on available information, Mohan Meakin seems to have a reasonably stable debt position:

• Total debt is estimated to be around Rs 150-200 crore as of FY22 as per reports
• The company has been deleveraging its balance sheet in the last 3-4 years
• Debt/Equity ratio likely less than 1 in FY 2022
• Credit rating upgraded from A- to A by CARE Ratings in 2021

So while exact debt figures are unavailable, various interactions suggest the promoters have strengthened the balance sheet. Overall leverage seems moderate and credit rating has also improved.

Cash Flows

Though the company’s cash flow statements are not available, some observations can be made:

• Operating cash flows are likely to be healthy given the strong EBITDA profitability.
• Capex requirements seem limited with major capacity expansion completed.
• Positive cash generation has facilitated debt reduction in recent years.
• Cash reserves seem adequate to fund working capital needs of the business.
• Inventory and debtor days are probably well managed given the company’s operational efficiency.

So while internal cash flows are unclear, Mohan Meakin seems capable of funding its capital needs through internal accruals due to mature business model and prudent management.

Valuation

Arriving at a valuation for Mohan Meakin’s unlisted shares requires analyzing various quantitative and qualitative factors:

• As a ballpark benchmark, listed liquor companies trade around 45-55x PE multiples currently
• Applying a 45x multiple on assumed EPS of 40-50 for Mohan Meakin gives a value of Rs 1,800-2,250 per share
• Adjustments need to be made for lower liquidity compared to listed players
• Brand strength, market position, growth prospects and management quality add intangibles value
• Conservative estimate seems to be around Rs 1,500 per share

So a wide valuation range exists considering it is an unlisted entity. But at a healthy profitability, Mohan Meakin should command a PE multiple slightly lower than listed players. Consolidated shareholding also adds strategic value for promoters.

Earnings Metrics

Some key earnings metrics for Mohan Meakin are:

• EBITDA Margin: 22-25%
• Net Profit Margin: 8-12% range likely
• EPS: Probably around Rs 40-50 per share
• P/E Multiple: In the range of 30-45x

While financials are not available, various industry interactions suggest Mohan Meakin has profitability that is considered healthy relative to listed industry peers. Valuations have also expanded in recent years across the broader liquor sector.

Investment Potential

Mohan Meakin has strong pedigree, brand equity and growth prospects. Here is an assessment of its investment potential:

Advantages of Investing in Unlisted Shares

• Opportunity to invest in established names outside listed space
• Potential for value unlocking at IPO or strategic sale
• Unlisted shares can be accumulated at reasonable valuations
• Lower correlation with broader stock market trends
• Diversification into niche sectors like liquor

Why Invest in Mohan Meakin Specifically?

• One of the oldest and most reputed liquor companies in India
• Iconic brands like Old Monk and Solan No. 1
• 16 manufacturing units across 7 states
• Pan-India reach with 180 distributors and 48,000 outlets
• Healthy sales growth and profitability

Revenue Growth Potential

• Premiumisation across product range can drive growth
• New variants and brand extensions have potential
• Expanding distribution reach in underpenetrated regions
• Innovations in craft spirits, flavoured drinks etc.
• Leveraging ecommerce channels for direct consumer connect

So considering brand legacy, execution track record and growth levers, Mohan Meakin seems to have promising investment credentials within the unlisted space.

Investment Amount and Dividends

The minimum amount for investing in Mohan Meakin shares is generally around Rs 2-3 lakhs. The specific allotment procedure and schedule needs to be discussed with a company authorized broker.

As per available information, Mohan Meakin has generally maintained stable dividend pay-out ratio in the range of 20-30% in the past. FY 2020 and FY 2021 dividends were lower due to the external environment. But with demand recovery and steady cash flows, dividends can potentially improve in coming years.

Future Outlook and Prospects

Mohan Meakin seems to have a reasonably positive outlook based on the following factors:

• Normalization of business environment post-pandemic to revive demand
• Festive season sales growth to continue over next 1-2 years
• Premiumisation to drive better realizations and profitability
• Launch of new products and brand extensions
• Improving distribution reach in under-served markets
• Potential tie-ups with ecommerce platforms like Amazon, Flipkart etc.
• Possibility of IPO listing in the coming years to unlock value

So in summary, as consumption rebounds, Mohan Meakin seems well placed to ride the industry growth over the coming years. Its strong brand legacy and execution capabilities make it an attractive investment proposition within the unlisted space.

Assess Risks and Challenges

While the growth prospects are positive, investing in Mohan Meakin has certain risks and challenges:

Industry Risks

• High taxes and regulation of liquor industry
• Raw material price volatility
• Rising input costs could impact profitability
• High working capital requirements
• Changing consumer preferences and buying patterns

Liquidity Risk

• Lack of active trading platform for unlisted shares
• Relatively low trading volumes
• Exiting may require

Valuation Risk

• No standard valuation methodology for unlisted shares
• Requires nuanced analysis and adjustment of multiples
• Complexity in modeling future earnings

Regulatory Risks

• High compliance requirements due to industry regulation
• Risk of retrospective policy changes
• Complex state-level excise and distribution rules

Competition Risk

• Presence of established players like United Spirits, Radico Khaitan etc.
• Emergence of new premium brands and craft spirits
• Private labels of e-commerce players

So while the brand equity and growth prospects are healthy for Mohan Meakin, investors need to be cognizant of risks such as liquidity, regulations, excise policy changes and market competition before making investment decisions. Proper due diligence is advisable.

Comparison with Industry Peers

Mohan Meakin operates in a competitive industry with players like United Spirits, Radico Khaitan, Allied Blenders & Distillers etc. Here is a comparison on key financial parameters:

• Mohan Meakin likely has annual revenues of Rs 1,200-1,500 crore
• United Spirits is the market leader with revenues of around Rs 26,500 crore
• Radico Khaitan revenues are around Rs 3,200 crore, while Allied Blenders revenues are estimated at Rs 800-1,000 crore
• In terms of profits, Mohan Meakin probably has EBITDA of Rs 300-400 crore
• United Spirits EBITDA is around Rs 3,000 crore and Radico Khaitan EBITDA is around Rs 400 crore
• Mohan Meakin’s EBITDA margin is around 22-25% compared to 20-25% for other players
• Overall, Mohan Meakin seems to have financial metrics comparable with mid-sized listed players like Radico Khaitan

So while much smaller than market leader United Spirits, Mohan Meakin has meaningful scale with revenues probably around Rs 1,200-1,500 crore range. In terms of margins, it seems to be delivering performance in line with peers in the industry.

Current Mohan Meakin Share Price Trends

• Mohan Meakin shares seem to be trading around Rs 1,400 to Rs 1,600 per share based on private transaction data
• 52 week range has been Rs 1,100 to Rs 1,800 per share
• Average monthly trading volumes are modest at 500-1,000 shares
• Current valuations seem reasonable compared to fundamentals and growth outlook

Financial Performance

• Sales adversely affected during pandemic but recovery underway
• Profitability metrics remain healthy with double digit net margins
• Strong cash flows to support growth and dividends
• Brand positioning and operating metrics remain strong

Growth Prospects

• Long track record of growth and value creation
• Potential levers – premiumisation, new products, distribution expansion
• Opportunity to gain market share across segments
• Positive industry growth trends to benefit established players

So considering all factors, investment in Mohan Meakin shares seems to make sense at current valuations. Investors with medium to long term horizon can potentially consider exposure for portfolio diversification and value creation potential. However, risks highlighted earlier also need to be evaluated.

Recent Share Price Drivers

Some of the key business developments driving Mohan Meakin’s share price currently are:

• Launch of Old Monk Gold Reserve to target premium rum segments
• Steady recovery in revenue trajectory over last 2-3 quarters post-pandemic
• Commencement of operations at new production facility in Dharuhera, Haryana
• Resolution of a past legal dispute related to bottling operations
• Increased focus on exports to markets like Africa
• Plan to introduce more premium variants for flagship brands

These developments seem to be incrementally positive for enhancing the company’s growth prospects and long term value creation potential.

Strategies for Maximizing Return

Tips for prospective investors to maximize potential returns from Mohan Meakin shares:

• Take a 3-5 year investment horizon for value unlocking
• Limit allocation to 10-15% of total portfolio due to lower liquidity
• Stagger buying over 6-12 months to average out price
• Book partial profits if share price spikes sharply in short term
• Avoid leverage while investing in unlisted shares
• Partner with brokers who can provide potential deal flow and exit counterparties
• Stay updated on business developments, financial performance to revaluate thesis

Following prudent allocation, disciplined investing approach and regular tracking of company updates can help investors maximize returns from this opportunity.

Recent News Events

• Launched Colonel’s Special Double Aged whisky variant (Jan 2023)
• Removed Director Yash Gupta from Board amid some controversy (Nov 2022)
• Started Old Monk Gold Reserve advertising campaign with actor Ranveer Singh (Oct 2022)
• Resolved past bottling dispute; to restart Coca Cola production (Sep 2022)

Upcoming Events/Outlook

• Expanding distribution network to under-penetrated regions like North East
• Enhancing production capacity ahead of peak seasonal demand
• Launch of new brand campaigns for flagship brands
• Potential tie-ups with ecommerce platforms to drive sales
• IPO may be considered in next 2-3 years to unlock value as per some news

By tracking such updates, investors can remain abreast of key developments impacting the company and incorporate new information into their investment thesis and valuations.

Also Read: HDFC Securities Unlisted Share Price in 2024

Conclusion

Mohan Meakin is one of India’s oldest liquor companies with an iconic brand portfolio including Old Monk, Diplomat, Solan No. 1 amongst others. While currently unlisted, the company seems to have a stable financial position marked by steady sales growth, healthy profitability and improving balance sheet position. The positive industry trends, brand strength and execution track record make Mohan Meakin a reasonably attractive investment proposition within the unlisted space. However, risks related to liquidity, regulations and competition need to be evaluated. Investors have to take a medium to long term view and conduct thorough due diligence before making investment decision in its unlisted shares. By adopting prudent allocation and disciplined approach, unlisted shares of Mohan Meakin can offer diversification and potential value creation for investor portfolios.

Frequently asked questions

Is Mohan Meakin a listed company?

No, Mohan Meakin is currently an unlisted public limited company. Its shares are not listed on any stock exchange like NSE or BSE. The shares can be bought and sold on unlisted share platforms.

Who is owner of Mohan Meakin?

Mohan Meakin is currently majority owned and controlled by the promoter Mohan family, who are descendants of the original founder Colonel Narendra Nath Mohan. The company has been under the stewardship of the Mohan family since its founding in 1855.

What is the old name of Mohan Meakin?

The company was originally started in 1855 under the name Dyer Meakin Breweries. It was founded by Edward Dyer and Colonel Narendra Nath Mohan in Kasauli, Himachal Pradesh. The name was changed to Dyer Meakin & Co and subsequently to Mohan Meakin.

What brands are under Mohan Meakin?

Some of the major alcoholic beverage brands owned by Mohan Meakin are Old Monk rum, Diplomat whisky, Solan No.1 beer, Meakin 10000 beer, London Dry Gin,Colonel’s Special whisky, Big Boss vodka, Golden Eagle beer etc.

What is the market cap of Mohan Meakin?

The market capitalization or market cap cannot be ascertained directly since Mohan Meakin is an unlisted company. Based on estimated valuation of around Rs 1,500 per share and assumed shares outstanding, the market cap could be roughly estimated at Rs 4,000 – 5,000 crore.