Liquor stocks, it seems, are the toast of Indian investors, giving them a heady feeling. When you buy liquor stocks, you buy shares in companies that make, sell, and distribute alcoholic beverages. The list of Indian alcohol stocks boasts some well-known names and smaller, niche companies. Investing in liquor stocks gives you a stake in these companies, enabling you to partake in their growth. You can choose from the best liquor stocks in India. Let us understand India’s growing liquor industry and some of the leading alcohol manufacturers in the country.
Liquor industry in India: An overview
The Indian liquor industry is in high spirits. The country’s liquor industry is counted alongside China, Brazil, and Mexico in the global beverage alcohol market. As the Indian economy grows and the purchasing power of consumers increases, the demand for premium liquor brands has also grown.
However, India’s liquor segment is as diverse as the country itself, going by the wide categories of liquor that cater to varying consumer tastes. From ordinary rum to high-end single malt, Indian consumers are spoilt for choice, not to mention the growing demand for beer and wine. A noteworthy trend is the growth of the Indian Made Foreign Liquor (IMFL) category, boosted by favorable demographics and an aspirational consumer base.
From an economic point of view, liquor sales are a major source of revenue for state governments. Increasing sales of premium brands also show the growing affluence of India’s middle class, who are willing to pay more to enjoy finer tastes.
Top liquor stocks in India in 2024 by market capitalization
In India, the liquor business has grown significantly in recent years, thanks to rising wages, changing lifestyles, and increasing urbanization. We have compiled a list of the best liquor stocks in India in 2024 as per market capitalization:
| No | Name | Market Cap (in Rs. Cr) | P/E Ratio |
| 1 | United Spirits Ltd | 1,12,274 | 79.4 |
| 2 | United Breweries Ltd | 55,628 | 124 |
| 3 | Radico Khaitan Ltd | 28,344 | 105 |
| 4 | Allied Blenders & Distillers Ltd | 10,145 | 3,994 |
| 5 | Piccadily Agro Industries Ltd | 6,981 | 78.7 |
| 6 | Tilaknagar Industries Ltd | 6,173 | 39.7 |
| 7 | Sula Vineyards Ltd | 4,119 | 44.3 |
| 8 | India Glycols Ltd | 3,868 | 21.2 |
| 9 | Globus Spirits Ltd | 3,744 | 50.4 |
| 10 | Som Distilleries & Breweries Ltd | 2,414 | 25.9 |
All data from Screener.in as on Sep 16, 2024.
Overview of best liquor stocks in India as per market capitalization
Here is an overview of the best alcohol stocks in India.
1. United Spirits Ltd
United Spirits Limited (USL) is the largest alcoholic beverage company in India and is also among the largest consumer goods companies. It is involved in the manufacture, sale, and distribution of alcoholic beverages. It has a comprehensive brand portfolio, with over 80 brands of scotch whisky, IMFL whisky, brandy, rum, vodka, and gin.
The company manufactures, sells, and distributes a wide portfolio of premium brands such as Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, Royal Challenge, McDowell’s No.1, Smirnoff, and Captain Morgan.
2. United Breweries Ltd
United Breweries has a 54% market share in the Indian beer market. The company sells beer under its flagship brand ‘Kingfisher’. The company is primarily engaged in the manufacture, sale, and purchase of beer and non-alcoholic beverages.
3. RadicoKhaitan Limited
One of the leading names among the best liquor stocks in India is RadicoKhaitan Limited, incorporated in 1983. The firm makes and sells Indian Made Foreign Liquor (IMFL) brands. The company sells well-known brands of whisky, rum, and vodka like 8 PM Premium Black Whisky, Contessa Rum, and Magic Moments Vodka. There is much room for RadicoKhaitan to grow in the Indian market, thanks to its substantial brand value, extensive transport network, and cost-effective operations.
4. Allied Blenders & Distillers Ltd
Allied Blenders and Distillers is an Indian-made foreign liquor company operating in four segments: whisky, brandy, rum, and vodka. The firm’s manufacturing network includes 32 bottling units and one distillery.
5. Piccadily Agro Industries Ltd
Piccadily Agro Industries Ltd (PAIL), incorporated in 1994, began commercial operations in 1997 as a sugar processing company. In 2007, PAIL established a distillery unit. Currently, the company is engaged in manufacturing sugar and distillery products at its manufacturing plant in Haryana. Indri, the single malt whiskey, is Piccadily’s premium product.
6. Tilaknagar Industries Ltd.
Tilaknagar Industries, one of the leading liquor stocks in India, has a portfolio of brands across the IMFL segment, including whisky, brandy, rum, gin, and vodka. Mansion House brandy and Courrier Napolean Brandy are the firm’s premium brands, as are Volga Vodka and Blue Lagoon gin.
7. Sula Vineyards Limited
Based in Nashik, Maharashtra, Sula Vineyards has been around since 1996. It has 30 kinds of wine brands such as Rasa, Dindori, The Source, Late Harvest, and Sula Classic.
8. India Glycols Ltd
India Glycols Limited is one of the leading manufacturers of Glycols, Ethoxylates & PEGs, Performance Chemicals, Glycol Ether & Acetates, Guar Gum, and Potable Alcohol. The company makes Soulmate Whisky and BeachHouse XXX rum.
9. Globus Spirits Limited
Globus Spirits Limited is a large maker of alcoholic drinks in the IMFL category. Mr. Hooper, Unibrew, and Goldie XXX Rum are some of the company’s renowned brands. Globus Spirits focuses on the general and semi-premium markets.
10. Som Distilleries & Breweries Ltd
Som Distilleries became a public limited company in 1993. The firm is based in Bhopal, Madhya Pradesh. Its current lineup includes gin, scotch whiskey, beer, rum, vodka, and other mixed liquors. Some of its brands are Hunter beer, Milestone 100 whisky, and White Fox vodka.
Factors to consider before investing in liquor stocks in India
The top 10 liquor companies in India are some of the best liquor stocks in India. You can find the best liquor shares in India that fit your financial goals and level of risk tolerance by doing research. Before putting money into liquor stocks, investors would do well to keep in mind the following.
Regulatory environment
India’s alcohol business is highly regulated. Both central government and state policies impact how alcohol is manufactured, sold, and distributed. You need to know these rules to assess how liquor stocks are likely to perform.
Competition
Some of the most important things that show how competitive the liquor business is are distribution networks and how brands are positioned. Technology also has a big part to play. This means that people who want to invest should look at the best alcohol stocks in India that do well on these criteria.
Market position and brand portfolio
Businesses that have loyal customers usually do better in a down market. Because of this, you should always look at how well-known a company is and what customers want before deciding to invest in it.
Financial performance
Financial performance shows how financially stable a company is. Before you invest, look at its cash flow, profits, revenue growth, and other factors. Look for steady businesses and compare the numbers with competitors to get a better idea.
Social and cultural factors
Lifestyle choices and societal pressures can affect the demand for alcoholic drinks. Because society’s views on drinking alcohol are changing along with cultural norms in different states and health trends, the market situation could change. These things should be considered when looking at the best liquor stocks in India as an investment.
Should you invest in liquor stocks?
Liquor business in India is likely to undergo significant changes in the next few years due to changing customer tastes and rules. People are willing to pay more for better drinks. This trend is driving the ascent in the premium sectors. At the same time, as people become more health-conscious, low-alcohol and non-alcoholic choices are becoming more popular. Companies that can set themselves apart by offering unique tastes with a focus on quality will likely do well in this changing market.
Conclusion
Investors can consider investing in Indian liquor stocks. The sector is expected to grow exponentially over the next few years, thanks to a growing middle class, rising disposable income, and changing social mores about drinking alcohol. The liquor companies listed above are some of the best liquor stocks in India as of 2024. Before putting money into this industry, investors should consider regulatory issues, risk appetite, and the possible downside.
