Best Liquor Stocks in India

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-

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-

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.