The liquor industry in India is showing high growth, with the alcohol market of India predicted to touch a valuation of around 54 lakhs billion by 2027. Let’s deep dive into the 5 best alcohol stocks in India.
Best Alcohol Stocks in India
Here we present you with some of the best liquor stocks in India:
1. United Spirits
United Spirits is the leading alcoholic beverage company in India. It is a subsidiary of Diageo, A British alcoholic beverage company. The company is very popular in Indian markets.
Some of its popular liquor brands are Black Dog, McDowell’s, Bagpiper, Royal Challenge, etc. The company is headquartered in Bengaluru.
- Share Price: ₹1,086.15
- Market Cap: ₹78,764 Cr
2. Radico Khaitan
Radico Khaitan is an Indian company that is engaged in the production of Indian Made Foreign Liquor (IMFL), country liquor, and industrial alcohol.
It is the 4th largest Indian liquor company. Radico Khaitan is also one of the oldest and largest manufacturers of IMFL in India.
The company is popular among alcohol lovers in India. Its products include whisky, rum, rectified spirits brandy, and vodka.
- Share Price: ₹1,653.20
- Market Cap: ₹22,072 Cr
3. Sula Vineyards
Sula Vineyards is a leading wine company in India. It was founded by Rajeev Samant in the year 1999.
The company offers varied categories of wine which include red, white, and rose wines.
It is also the most awarded wine brand in India. By running 60% of its winery and hospitality operations through solar energy it is also one of the most sustainable wine businesses in India.
- Share Price: ₹509.50
- Market Cap: ₹4,022 Cr
4. Globus Spirits
Globus Spirits is an Indian company founded in 1993. The company has manufacturing units in the states of West Bengal, Bihar Rajasthan, and Haryana.
The company is into manufacturing and sale of alcoholic beverages like rum, brandy, whiskey, etc.
Some of their popular label names are Heer Ranjha, Country Club, White Lace, French Castle, etc. These names are popular in the market of ‘desi daru’.
- Share Price: ₹863.00
- Market Cap: ₹3,643.12 Cr
5. Tilaknagar Industries
Tilaknagar Industries is an Indian company that manufactures and sells alcoholic beverages.
The name of the company is in honor of independence activist Bal Gangadhar Tilak. Some of the products it offers are brandy, vodka, whisky, gin, rum, etc.
It sells its products under the label names of Mansion House Whisky, Senate Royale Red, Madiraa, etc. Tilaknagar Industries is one of the best alcohol stocks in India.
- Share Price: ₹240.95
- Market Cap: ₹4,622 Cr
Factors That Affect Liquor Stocks
Investing in liquor stocks can be beneficial. However, there are a lot of regulations on the production and supply of liquor in India by the Government. So, you need to consider certain factors before you invest in liquor stocks.
1. Regulations
Before investing in the best liquor stocks in India you need to understand the regulatory framework of the alcohol industry and how the business works.
The production, sales, and distribution of alcohol are regulated by the government. There are state-specific laws related to alcohol in India that have a bearing on alcohol sales.
For example, Gujrat is a dry state whereas some states are not allowed to sell alcohol on specific days.
2. Financial Performance
You need to assess the company’s financial performance before investing in them. Check the liquor company’s profitability, cash flow, revenue growth, debt-to-equity ratio, and other factors.
At the same time, it’s prudent to see how competitors are doing on the same metrics to ensure that you’re buying the winning horse, not the lagging competitor.
3. Valuation
As an investor, you should also check the valuation of alcohol companies. You can also compare a company’s valuation with other companies to determine if it is undervalued or overvalued.
How to Trade & Invest in Best Alcohol Stocks?
To invest in the best alcohol stocks in India you need to have a demat and trading account. You can consider opening an account with Dhan.
We are one of the leading online brokers in India. You can open the demat and trading account in a few minutes by submitting the KYC documents.
After your account is opened with the broker you can start investing in alcohol stocks. You can invest in individual stocks as well as in funds that contain these stocks.
Conclusion
The liquor industry has a good scope of growth in the coming years, which you can leverage by investing in any of the above-mentioned liquor stocks.
However, before investing in alcohol stocks do consider certain factors like financial parameters, regulations, market trends, etc.
Disclaimer: Our blogs are not to be construed as investment advice. Trading and investing in the securities market carries risk. Please do your due diligence before trading and investing.
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