Best Liquor Stocks in India

12 March 2024
8 min read
Best Liquor Stocks in India
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(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)

The liquor industry in India is one of the largest ones in the entire world. It consists of a wide array of segments. From spirits to beer to wine to whiskey, the industry is diversified across various alcohol categories.

With rising disposable income and an increasing population, the liquor market is growing steadily. Due to such reasons and more, the investment in liquor stocks has been incrementing too. So, let’s dissect the varied facets of the liquor industry and explore some of the best liquor stocks in India!

Liquor Industry in India - A Quick Outline

The liquor industry is heavily regulated in India, with different laws and regulations in each state. These regulations define the production, distribution, and sale of liquor.

The alcohol market comprises a range of segments that comprises vodka, rum, gin, whiskey, wine, etc. Be it domestic or multinational companies, both players are playing a pivotal role in the growth record of this industry.

On the distribution front, in some states, the sale of alcohol is controlled by government-owned corporations, while in others, it is overseen by private distributors and retailers. However, several e-commerce players are coming up to deliver across urban areas.

While the industry has been growing ever since its inception, it has often faced setbacks due to high taxes, changing consumer preferences, stringent regulations, etc.

Given the rapid growth of the alcohol and beverage industry, retail investors have shown keen interest in liquor stocks. Over the years, stock investment in such companies has been rising. But before investing in liquor stocks, it is highly essential to determine factors such as growth potential, revenue scale, brand positioning, and more.

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Best Liquor Stocks in India 2024 as per Analyst Ratings

We have listed some of the best liquor shares in India based on analyst ratings here. We have picked analyst ratings provided by the I/B/E/S database as criteria, as these ratings are an aggregation of investment calls that registered stock market analysts provide.

Now, let’s explore the list-

S.No.

Best Liquor Stocks in India (as per analyst ratings)

BUY Analyst Rating (in %)

1.

United Spirits

47.62

2.

Radico Khaitan

44.44

*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog.

Top Liquor Stocks in India in 2024 (as per Market Capitalization)

In this list, have a look at some of the top liquor shares in India as per the market capitalization-

S.No.

Best Liquor Company Stocks in India (as per Market Capitalization)

1.

United Spirits

2.

United Breweries

3.

Radico Khaitan

4.

Sula Vineyards

5.

Tilaknagar Industries

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Best Liquor Stocks in India as per Analyst Ratings

Now, let’s have a look at the overview of the alcohol shares listed above as per analyst ratings and market capitalization-

1) United Spirits

United Spirits Ltd was founded in 1999. It is one of the popular players in the alcohol market. It is primarily engaged in manufacturing, purchase and sale of beverage alcohol. Its famous brands include Johnnie Walker, Black &White, Black Dog, Signature, Royal Challenge, McDowell’s No 1, Smirnoff, and many more.

2) Radico Khaitan

Next on the list is Radico Khaitan Limited. It was founded in 1983 and has been involved in manufacturing alcohol and alcoholic products. With over 30+ bottling units, the company also operates approximately 75,000+ retail outlets and 8,000+ on-premises shops.

You might have heard about its popular brands, such as Rampur Indian Single Malt Whisky, 

Magic Moments Dazzle Vodka - Gold, After Dark Premium Whisky, 8 PM Whisky, Whytehall Premium Brandy, etc.

3) United Breweries

United Breweries is a popular beer company in India. From manufacturing to selling beers and non-alcoholic beverages, the company is one of the leading players in the liquor industry.

Some of its popular beer brands are Heineken, Kingfisher Premium, Zingaro, Kalyani Black Label, London Pilsner. Apart from the beer, some famous non-alcoholic brands are Kingfisher Premium Packaged Drinking Water, Kingfisher Strong Power Soda, Kingfisher Storm Strong Soda, etc.

4) Sula Vineyards

Sula Vineyards is one of the most famous wine producers and sellers in India. The company runs mainly 2 chains of operations comprising manufacturing of alcoholic beverages and wine tourism.

It offers a wide range of beverages, such as red wine, rose wine, white wine, sparkling wine, etc. Its popular ones are Syrah, Zinfandel, Shiraz, Chardonnay, Viognier, Chenin Blanc and Riesling, and many more.

5) Tilaknagar Industries

Tilaknagar Industries Ltd. is one of the oldest alcoholic beverage companies in India. It is mainly engaged in the manufacturing and sale of Indian Made Foreign Liquor (IMFL) and extra-neutral alcohol. The company offers a wide array of products, such as brandy, whisky, vodka, gin, and rum. 

It has a widespread business as it exports to Africa, Europe, East and South-East Asia, and the Middle East. Its popular products are Courrier Napoleon Brandy-Green, Mansion House Whiskey, Lumumba, Apple Fizz, Madira Rum, Brandy Smash, Warm Punch, etc.

Factors to Consider Before Investing in Liquor Stocks in India

It is immensely crucial to consider various factors before investing in alcohol stocks in India. Some of the vital ones include-

  • Regulatory Environment

The liquor industry is heavily regulated in India. Its laws vary from state to state. Hence, you should carefully consider the regulatory landscape within which a company runs its operations, how it’s taxed, its licensing stipulations, etc that are likely to affect the company’s functions and revenue scale.

  • Competition

The next factor that you should consider certainly is the competitive topography. By evaluating the competitive landscape, you can easily assess which companies have strong distribution networks, robust brand portfolios, proprietary technology, etc. Since these factors directly influence a company’s performance in the long run, thus, make sure to assess them thoroughly.

  • Market Position and Brand Strength

Before you pick any liquor company for stock investment, ensure to check its market share and brand strength. Usually, companies with loyal customer bases tend to perform better in difficult market conditions. Therefore, you should always check a brand’s recognition and consumer preferences too before making an investment decision.

  • Financial Performance

Financial Performance provides insight into a company’s overall financial soundness. Thus, before investing, evaluate its revenue growth margins, cash flow, profitability, etc. Search for companies with a consistent graph and compare the metrics with competitors for better clarity.

  • Social and Cultural Factors

The demand for alcoholic beverages can change at any moment due to social and cultural factors. Given the changing attitude towards alcohol consumption, cultural norms in different states, and health trends, the demand may change, hence, be mindful of these factors.

Should You Invest in Liquor Stocks?

Liquor and Beverage Industry has always been one of the fastest-growing sectors in India. Given its ever-evolving demand and consistent performance, the liquor stocks have been doing well in the stock market. However, there have been times when their performance turned upside down due to stringent regulations, hefty taxes, and changing behaviour towards alcohol.

It's true that the alcohol industry has been showing good signs for investment, but you must remember that they can easily get impacted due to the factors mentioned above. Hence, before investing any sum, run a thorough assessment certainly.

Summing Up

India has one of the largest alcohol markets in the world. Given the production scale, evergreen demand, a vast range of products, the industry has been growing since the time it started.

While the industry has been scaling on the one hand, on the other, it has always faced several

setbacks, too. Be it due to government norms, weak risk management, or changing demands, the liquor market has and is likely to encounter numerous challenges on the way.

Thus, the best way to mitigate your risk and boost your investment is to evaluate carefully while investing in liquor stocks. Always make sure to run a full company analysis and assess if it fits your investment and risk criteria.

*Stock Selection Criteria for Top Stocks Based on Analyst Rating

Investors must carefully read through the following information on stock selection criteria while running through the stocks based on analyst ratings-

These stocks have been shortlisted as per Analyst ratings provided by the I/B/E/S (The Institutional Broker’s Estimate System) database, further aggregated by Refinitiv. Ratings are determined by analysts' forecasts of company performance, taking into account metrics like earnings per share, sales, and net income. These ratings should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).  

Before investing, investors must conduct independent research and not solely rely on the information provided here. This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance.

*Stock Selection Criteria for Top Stocks Based on Market Capitalisation

These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. 

It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Statutory Warning: Alcohol/Liquor consumption is harmful to health. We don't encourage the consumption of the same.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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