Best Liquor Stocks in India

Best Liquor Stocks in India 2024 as per Analyst Ratings

The following table represents the best liquor stocks in India in 2024, as per analyst ratings. These analysts perform a comprehensive analysis of the stock market and the stocks under consideration before assigning them a rating.

Top Liquor Stocks in India in 2024 as per Market Capitalisation

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

Overview of Best Liquor Stocks in India as per Analyst Ratings and Market Capitalisation

Here is a brief overview of the top liquor shares in India as per analyst ratings and market capitalisation mentioned above:

1) United Spirits

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

For the fourth quarter of FY24, the company recorded consolidated net sales of Rs 2,666.00 crore, down from Rs 2,989.30 crore in the December quarter and Rs 2,864.70 crore in the September quarter.

The company witnessed net sales of Rs 2,171.90 crore in the June quarter. Year-on-year (YoY) net sales stood at Rs 2,493.80 crore. Profit after tax (PAT) stood at Rs 384.00 crore in the fourth quarter ending March 2024, compared to Rs 348.10 crore in the December quarter. In the quarter ended September, the number stood at Rs 341.30 crore, and in the June quarter, PAT was Rs 238.20 crore. YoY PAT stood at Rs 204.00 crore.

For the nine months ending December of the current financial year, the company notched up net sales of Rs 18,995.50 crore, compared to Rs 7,879.90 crore in FY22, Rs 6,946.60 crore in FY21, and 5,664.80 in FY20. PAT for the nine months of the current year stood at Rs 927.60 crore, compared to Rs 847.70 crore in FY22. In FY21, the figure stood at Rs 633.60 crore, up sharply from Rs 143 crore in FY20. Higher interest and other expenses pulled down the PAT in FY20. 

In Q4 FY24, the demand environment remained muted due to rising inflationary pressures, while Q3 witnessed higher sales due to the festive season, Cricket World Cup, and peak wedding season, say analysts. 

United Spirits continues to witness the trend of premiumisation. Earlier, the company had sold a big part of its popular portfolio to concentrate on premiumisation. This trend of premiumisation in India is in line with the industry’s global trend of upgrading to better brands.

2) Radico Khaitan

Next on the list is Radico Khaitan Limited. It was founded in 1983 and manufactures alcohol and related products. It has 30+ bottling units, 75,000+ retail outlets, and 8,000+ on-premises shops.

Some of its well-known brands are Rampur Indian Single Malt Whisky, Magic Moments Dazzle Vodka - Gold, After Dark Premium Whisky, 8 PM Whisky, Whytehall Premium Brandy, etc.

For the fourth quarter ending March 2024, Radico Khaitan recorded net sales of Rs 1,078.68. This is 7% lower than the Rs 1,160.91 crore recorded in the December quarter.

In the September quarter, this figure was  Rs 925.00 crore, while in the June quarter, the company registered net sales of Rs 953.92 crore. YoY net sales were Rs 831.84 crore. Profit after tax (PAT) in Q4 came in at Rs 53.91 crore, down a sharp 28% from the Rs 75.15 crore in the third quarter ending December 2023. This was due to higher raw material costs and Other Expenses. It recorded Rs 61.88 crore PAT in the September quarter and Rs 63.25 crore in the June quarter. YoY PAT came in at Rs 37.26 crore. 

For the nine months ending December of the current financial year, the company recorded net sales of Rs 3,039.84 crore, compared to Rs 2,310.98 crore in FY22, a rise of 31.5%. For FY21, net sales came in at Rs  2,077.59 crore, and Rs 1,723.41 crore in FY20. PAT for the nine months of the current year stood at Rs 198.97 crore, compared to Rs 167.16 crore in FY22. In FY21, the figure stood at Rs 205.80 crore, up a little from Rs 197.01 crore in FY20. 

Radico Khaitan is driving a premiumisation strategy. Since FY21, this strategy has been helping the company record double-digit volume-led revenue growth, which is ahead of the industry numbers. In volume terms, the premium products category is growing at over 20%.

Rampur India single-malt whisky is growing by 3x, while Royal Ranthambore is available in 20 states of India. This is estimated to drive EBITDA margins to 17-18% and improve the cash flow. The company expects these positives to result in a sharp fall in its debt levels by FY26.

3) United Breweries

United Breweries is a popular beer company in India. It is one of the leading companies manufacturing and selling beer and non-alcoholic beverages in the country.

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

For the fourth quarter of FY24, United Breweries recorded net sales of Rs 2,133.38 crore. In the third quarter (December 2023), the beer maker recorded net sales of Rs 1,824.46 crore. That is a growth of 16.9% in Q4. In the September quarter, the company's net sales came in at Rs 1,890.05 crore, while in the June quarter, it registered net sales of Rs 2,274.79 crore.

YoY net sales had come in at Rs 1,765.88 crore. Profit after tax (PAT) in Q4 stood at Rs 81.20 crore, compared to Rs 85.34 crore in the third quarter ending December 2023. The rise in PAT in Q4 is due to the 10.9% rise in volume and 21% rise in premium segment offerings, chiefly Kingfisher Ultra and Kingfisher Ultra Max. In the September quarter, it was Rs 107.28 crore, while in the June quarter, the number stood at Rs 136.21 crore. YoY PAT was Rs 9.81 crore. 

For the nine months ending December of the current financial year, the company recorded net sales of Rs 5,989.30 crore, up from Rs 5,734.04 crore in FY22. For FY21, net sales came in at Rs 4,129.27 crore, and Rs 2,698.45 crore in FY20.

PAT for the nine months of the current year stood at Rs 329.31 crore, compared to Rs 294.81 crore in FY22. In FY21, the figure stood at Rs 202.30 crore. However, PAT in FY20 was sharply down at Rs 16.30 crore, due to lower net sales. 

4) Sula Vineyards

Compared to hard liquor, wine is relatively new to the Indian market. In that space, Sula Vineyards is a big producer and seller. The company operates in two segments ― manufacturing of alcoholic beverages and wine tourism.

It offers a wide range of wines. These include red wine, rose wine, white wine, sparkling wine, etc. Its popular names are Syrah, Zinfandel, Shiraz, Chardonnay, Viognier, Chenin Blanc, Riesling, and many more.

For the fourth quarter of FY24, Sula Vineyards recorded net sales of Rs 122.52 crore, sharply down from the third quarter figure of Rs 203.04 crore. Year-on-year (YoY) net sales came in at Rs 113.23 crore, a rise of 8%. In the September quarter, the figure was Rs 133.69 crore, while in the June quarter, it was Rs 108.49 crore. Profit after tax (PAT) was Rs 13.55 crore in Q4 FY24, compared to Rs 42.98 crore in Q3 ending December 2023. YoY net profit was slightly lower from Rs 14.25 crore. In the September quarter, PAT was Rs 23.09 crore, up sharply from Rs 13.68 crore in the June quarter. 

For the nine months ending December of the current financial year, the company recorded net sales of Rs 445.22 crore, compared to Rs 403.04 crore in FY22, a year-on-year (YoY) rise of 10.47%. For FY21, net sales came in at Rs 317.96 crore. PAT for the nine months of the current year stood at Rs 79.76 crore, compared to Rs 69.79 crore in FY22. In FY21, the figure stood at Rs 38.55 crore. 

5) Tilaknagar Industries

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

Besides the domestic market, Tilaknagar Industries has a big presence in the export market too. 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.

For the fourth quarter of FY24, Tilaknagar Industries had net sales of Rs 358.78 crore, down 4.75% from Rs 376.69 crore in the September quarter. Year-on-year (YoY) net sales were little changed from Rs 357.45 crore. In the September quarter, net sales came in at Rs 354.39 crore, and in the June quarter, it was Rs 304.10 crore.

Profit after tax (PAT) was Rs 31.45 crore in Q4 ending March 2024, compared to Rs 43.77 crore in the December quarter. YoY the figure was Rs 59.10 crore. In the quarter ended September, PAT came in at Rs 37.04 crore, and in the June 2023 quarter, it was Rs 25.75 crore on lower sales. 

For the nine months ending December of the current financial year, the company recorded net sales of Rs 1,035.17 crore, compared to Rs 806.91 crore in FY22, a year-on-year (YoY) rise of 28%. For FY21, net sales came in at Rs 542.31 crore, while for the previous year it was Rs 976.57 crore.

PAT for the nine months of the current year stood at Rs 106.56 crore, compared to Rs 90.80 crore in FY22. In FY21, the figure was sharply lower at Rs 21.94 crore due to lower net sales. In FY20, the company had a loss of Rs 29.38 crore.

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 and among the most taxed sectors in India. These laws span manufacturing, taxation, licensing, and marketing, including advertising by industry players. Laws by both the central and state governments govern these aspects. In fact, the laws vary from state to state. These laws, especially those related to taxation, change every so often. 

• Competition

Distribution networks and brand positioning are among the top markers of the competitive landscape of the liquor industry. Technology, too, plays a major part. For investment purposes, investors should look at companies that stand high on these parameters.  

• Market Position and Brand Portfolio

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 before making an investment decision.

• Financial Performance

Financial performance provides insights 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 due to social and cultural norms. Given the changing attitude towards alcohol consumption, cultural norms in different states, and health trends, the demand scenario may undergo a change. While analysing liquor stocks for investment, it is important to be mindful of these factors.

Should You Invest in Liquor Stocks?

The liquor and beverage industry has been among the fastest-growing industries in India.

Given the ever-evolving demand for liquor and related products and the consistent performance of the companies, 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.

Hence, before investing in liquor stocks, run a thorough assessment.

Summing Up

India is one of the largest alcohol markets in the world. Given the production scale, evergreen demand, and a vast range of products, the industry has grown consistently.

That is not to say there have been no setbacks. Over the years, the industry has had to face stringent government norms, weak risk management, and changing demand scenarios, to name a few pitfalls.

Thus, take expert advice before investing money in this sector, which has great growth potential but is hobbled by stringent rules, regulations, and societal norms.