Best Liquor Stocks in India to Invest in 2024

  • 18 Mar 2024
  • Read 15 mins read

The Indian liquor market presents a lucrative investment opportunity due to the country's growing middle class and rising disposable incomes, which have led to an increased demand for premium alcoholic beverages. Companies that cater to these changing preferences can benefit from a diverse product portfolio. The regulatory environment has become more favorable, allowing liquor companies to access and operate more efficiently. However, investors must be aware of the risks associated with investing in liquor stocks in India, such as unpredictable regulatory landscapes and the need for continuous innovation. 

The competitive nature of the industry also requires careful analysis of market dynamics and positioning of liquor companies in India listed in stock market. Despite these risks, the Indian liquor sector is resilient and offers opportunities for investors. Technological advancements and digitalization are also playing a crucial role in transforming the industry. By evaluating market trends, financial performance, and regulatory developments, investors can make informed decisions and navigate the complexities of the liquor industry. We will explore more in this article.

Best Alcohol Stocks in India List 

Below are the best alcohol stocks in India dated as of March 14th,  2024 

Stock NameClose Price (Rs.)
United Spirits Ltd1,053.10
United Breweries Ltd1,582.05
Radico Khaitan Ltd1,422.50
Tilaknagar Industries Ltd280.40
Sula Vineyards Ltd484.05
Globus Spirits Ltd846.25
SOM Distilleries and Breweries Ltd299.70
G M Breweries Ltd668.15
Jagatjit Industries Ltd207.50
Associated Alcohols & Breweries Ltd451.95

Note: The above listed liquor companies in India listed in the stock market contain data updated as of 14th March 2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.

 

Overview of the Liquor Industry

India's growing economy presents a significant opportunity for the liquor industry, with diverse consumer tastes and cultural influences making it an attractive investment opportunity. Below is an overview of the liquor stocks in India.

  1. United Spirits Ltd:

    United Spirits Ltd, a leading Indian spirits company, is known for its diverse brands and strong market presence, making it a popular choice among investors.
  2. United Breweries Ltd:

    United Breweries Ltd, known for its Kingfisher beer, is a prominent Indian beer market player with a substantial market share. Its consistent performance makes it an attractive investment opportunity.
  3. Radico Khaitan Ltd:

    Radico Khaitan Ltd is a dynamic and forward-thinking company known for its high-quality liquor products and innovative approach, making it an attractive choice for investors seeking dynamic and forward-thinking companies.
  4. Tilaknagar Industries Ltd:

    Tilaknagar Industries Ltd, a leading brandy producer, is known for its diverse product portfolio, catering to various consumer preferences, making it a popular choice for investors seeking a diverse brandy offering.
  5. Sula Vineyards Ltd:

    Sula Vineyards Ltd is a prominent name in the Indian wine industry and has played a significant role in popularizing wine consumption in the country. Investing in Sula offers a unique opportunity in the alcoholic beverage sector, given its focus on wines and its distinct market positioning.
  6. Globus Spirits Ltd:

    Globus Spirits Ltd is known for producing country liquor and Indian-made foreign Liquor (IMFL). The company's success in rural areas highlights its market penetration strategy, making it an appealing option for investors keen on companies with a strong presence in specific regions.
  7. SOM Distilleries and Breweries Ltd:

    With a diverse portfolio of beers and spirits, SOM Distilleries and Breweries Ltd is expanding its presence across India. The company's growth-oriented approach attracts investor attention, positioning it for further expansion and market share gains.
  8. G M Breweries Ltd:

    G M Breweries Ltd is primarily recognized for its country liquor offerings and has a significant presence in Maharashtra. The company's focus on affordable beverages contributes to its unique market positioning, making it an interesting consideration for investors.
  9. Jagatjit Industries Ltd:

    Jagatjit Industries Ltd., known for being one of the best liquor stocks in India, offers a wide range of alcoholic beverages and has a long-standing presence in the industry. Its rich history and established reputation instil investor confidence, making it a trusted choice in the alcoholic beverage sector.
  10. Associated Alcohols & Breweries Ltd:

    Associated Alcohols & Breweries Ltd engages in various segments, including IMFL and bulk alcohol production. The company's consistent performance and diversified operations make it a standout option for investors seeking stability and growth potential in the market.

What are Liquor Stocks?

Liquor stocks in India are companies that sell alcoholic drinks like spirits, wine, and beer to the public. Investors aim to make money from selling these drinks, which depends on consumer preferences, economic conditions, and alcohol regulations. Different types of liquor stocks include spirits, beer, and wine made from grapes or other fruits. To invest in liquor stocks, one should consider factors like consumer preferences, economic conditions,  alcohol rules, competition, and global market trends. Government regulations and health concerns could impact the profits of liquor companies. To make informed investment decisions, understand different types of liquor stocks in India, consider potential rules and competition, and assess opportunities and risks.

Best Alcohol Stocks in India – Market Cap

Stock NameMarket Cap (Rs. in cr.)
United Spirits Ltd77,099.19
United Breweries Ltd41,601.51
Radico Khaitan Ltd19,142.25
Tilaknagar Industries Ltd5,239.91
Sula Vineyards Ltd4,089.58
Globus Spirits Ltd2,369.75
SOM Distilleries and Breweries Ltd2,286.17
G M Breweries Ltd1,216.53
Jagatjit Industries Ltd979.07
Associated Alcohols & Breweries Ltd810.13

Note: The above liquor stock in India contains data updated as of 14th March 2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.

Alcohol Stocks India – Highest Net Profit Margin 

Stock NameNet Profit Margin (%)
G M Breweries Ltd16.27
Sula Vineyards Ltd16.17
Tilaknagar Industries Ltd12.00
Aurangabad Distillery Ltd11.84
United Spirits Ltd10.26
SOM Distilleries and Breweries Ltd7.46
Radico Khaitan Ltd6.99
Associated Alcohols & Breweries Ltd5.85
Globus Spirits Ltd5.79
United Breweries Ltd4.03

Note: This list of alcohol stocks contains data updated as of 14th March 2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.

Top Liquor Stocks in India – Highest Dividend

Stock NameDividend Yield (%)
Sula Vineyards Ltd1.72
G M Breweries Ltd0.90
Globus Spirits Ltd0.73
United Breweries Ltd0.48
Associated Alcohols & Breweries Ltd0.22
Radico Khaitan Ltd0.21
Tilaknagar Industries Ltd0.09
SOM Distilleries and Breweries Ltd0.08

Note: This list of alcohol stocks contains data updated as of 14th March 2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.

Best Liquor Stocks in India – High Eps List

Stock Name5Y Historical EPS Growth (%)
Globus Spirits Ltd77.12
Aurangabad Distillery Ltd40.97
SOM Distilleries and Breweries Ltd13.15
United Spirits Ltd12.37
Radico Khaitan Ltd12.11
IFB Agro Industries Ltd11.41
Associated Alcohols & Breweries Ltd10.53
G M Breweries Ltd6.51

Note: This list of alcohol stocks contains data updated as of 14th March 2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.

Top Alcohol Companies in India – Highest Volume

Stock NameRelative Volume
Silver Oak (India) Ltd2.34
Tilaknagar Industries Ltd1.71
IFB Agro Industries Ltd1.56
SOM Distilleries and Breweries Ltd1.37
United Spirits Ltd1.36
Radico Khaitan Ltd1.29
Aurangabad Distillery Ltd1.21
Chambal Breweries and Distilleries Ltd1.18
Jagatjit Industries Ltd1.05
Globus Spirits Ltd0.65

Note: This list of alcohol stocks contains data updated as of 14th March 2024. However, it's important to conduct thorough research before making any investment decisions in these stocks.

Factors to Consider Before Investing in Liquor Stocks in India

The Indian liquor industry is regulated by both central and state governments, covering licensing, manufacturing, distribution, and retailing of alcoholic beverages. Understanding these regulations is crucial for investors, as they can significantly impact a company's profitability.

  1. Industry Trends

    Understanding market dynamics is crucial for investors in the liquor industry to assess growth potential and competitive landscape. This involves understanding consumption trends, identifying growth segments, evaluating market size, projected growth rates, and key players, and conducting competitive analysis to make informed decisions.
  2. Economic Viability

    Liquor companies' financial performance is crucial for determining investment worthiness. Key metrics include revenue growth, profitability margins, and return on investment. Evaluating the debt-to-equity ratio and interest coverage ratio helps understand debt management. Analyzing operating cash flow and free cash flow helps determine cash generation for reinvestment and expansion.
  3. Market Reputation

    Brand reputation, consumer loyalty, and market perception are crucial factors in a brand's success. Assessing a company's range and diversity of alcoholic beverages is essential for understanding its competitive advantage and adapting to changing consumer preferences, as it reflects its ability to cater to various market segments.
  4. Regulatory Compliance Corporate governance standards are crucial for a company's management quality and transparency, ensuring ethical business practices and long-term investor confidence by assessing aspects like management team, board composition, and financial reporting transparency.
  5. Environmental Responsibility

    Investors are increasingly considering environmental and social factors in investment decisions, valuing companies commitment to sustainability, responsible sourcing, and environmental conservation initiatives. Companies prioritizing sustainability are seen positively by stakeholders due to their long-term business operations and risk management.

To effectively invest in the liquor industry, investors must understand factors like regulatory environment, market dynamics, financial performance, brand strength, corporate governance, and sustainability efforts, enabling informed decisions.

Conclusion
India's expanding middle class and rising disposable incomes present opportunities for investing in alcohol stocks, particularly India liquor stocks, which are poised to benefit from the increasing demand for premium alcoholic beverages in the country. You can consider utilizing the BlinkX share market app to customise your trade orders before executing them, making the process more efficient. However, investors must navigate regulatory complexities, understand consumer trends, evaluate financial performance, and assess brand reputation. Adherence to corporate governance standards and sustainability are crucial for long-term success. Despite regulatory risks, the Indian liquor sector presents resilience, especially with technological advancements.

FAQs on Liquor Stocks

Liquor stocks can be profitable for investors, but factors like consumer preferences, regulatory environments, and market dynamics can impact performance. Thorough research, industry trends, and diversification are crucial.

Alcohol stocks show resilience during economic downturns due to consumer demand, but performance depends on brand strength, product diversity, pricing strategies, and market positioning, requiring careful evaluation.

Branding significantly influences liquor stocks success by influencing consumer perception, loyalty, and market positioning. Strong brands command premium pricing, and withstand competition impacting their performance and market share.

Geopolitical factors like trade policies, diplomatic relations, and economic conditions can significantly impact liquor stocks, requiring investors to stay informed and assess their potential implications.

Liquor stocks face regulatory, market, economic, and health risks, with changes in government regulations, consumer preferences, economic downturns, and changing social attitudes affecting profitability and operations.

Investors should consider financial performance, market position, regulatory environment, corporate governance, and sustainability efforts when evaluating liquor stocks.