Updated: | Sun, 01 Oct 2023 04:08 PM (IST)
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Looking for alcohol-producing companies in India? India is
not the highest consumer of alcohol products in the world but the Per capita
consumption of alcohol in India has more than doubled from 2005 to 2016.
Alcohol consumption in India amounted to 5.4 billion liters in 2016. As per a
report by the WHO, alcohol consumption has increased from 2.4 liters in 2005
to 5.7 liters in 2016 out of which, 4.2
liters being consumed by men and 1.5 liters being consumed by women.
Although the consumption in the country is being impacted
because of its bans in various states, most of the breweries and distilleries
companies also export their product and earn profits.
The sector has grown considerably and investing in these
stocks may give you high returns. Here is a list of the Top 5 Alcohol Stocks In
India where you can invest in.
Update 16.01.2024
Title: "Centre applied 50% export duty on Molasses: A Boost for Wine Stocks and Distilleries"
In a significant development, molasses, the essential ingredient in alcohol production, has witnessed 50% export duty applicable from 18.01.2024
Update 09.10.2023
Title: "GST Rate Cut on Molasses: A Boost for Wine Stocks and Distilleries"
In a significant development, molasses, the essential ingredient in alcohol production, has witnessed a notable reduction in GST (Goods and Services Tax) rates. The recent GST Council meeting has brought about a welcome change, lowering the GST rate on molasses from 28% to 5%. This shift carries immense benefits, particularly for the wine industry and distilleries across the country.
Top 5 Alcohol Stocks in India
- United Spirits Limited
- United Breweries Limited
- Radico Khaitan Limited
- Associated Alcohol and Breweries Limited
- Globus Spirits Limited
United Spirits Limited
United Spirits Limited, abbreviated as USL in an Indian
Alcoholic Beverages company, headquartered in Bengaluru. It is the world’s 2nd
largest spirit company in terms of volume. The company was established in 1826
by the name McDowell and Company and is currently having a market capitalization
of Rs. 41581 cr.
A subsidiary of Diageo, it produces several famous brands
like Vat 69, Black Dog, Black & White, Johnie Walker, Signature, Antiquity,
Singelton, Mcdowell’s No.1, Smirnoff, Captain Morgan, Tanqueray, Royal
Challenge, Ketel One. The company has 50 manufacturing plants across India.
The company has reported a net profit of Rs.623 cr with its
sales revenue of Rs. 9325 cr. in Mar’20 and is expected to report a profit in
2021 also. It is listed on both NSE & BSE and its symbol is “MCDOWELL-N” in
NSE and “UNITDSPR” in BSE.
United Breweries Limited
United Breweries Limited is also an alcohol beverage company
in India, headquartered in Bengaluru. It is the largest brewery in India with
almost 40% of the market share. The company was established in 1915 and is
having a market capitalization of Rs. 33,829 cr.
The company is India’s largest beer producer and sells under
the brand name “Kingfisher”. The company was defamed when its chairman Mr.
Vijay Mallya was accused of money laundering and being a willful
defaulter.
The company has reported a net profit of Rs.113.00 crores
with sales revenue of Rs.4998 cr. in Mar’21. The company has been continuously
reporting a profit for more than three years. It is listed in both NSE &
BSE and its symbol is “UBL”.
Update 01.10.2023
Market capital reached 41167 crore rupees and net profit reached 303 crore rupees in 2023
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Radico Khaitan Limited
Radico Khaitan Limited is one of the oldest and largest
producers of Indian Made Foreign Liquor (IMFL) in India. The company started
its operation in 1943 and is headquartered in Rampur, Uttar Pradesh. The market
capital of the company is Rs. 7870 cr. which is the third-largest in the Industry
in India.
The company produces over 15 brands including brands like Magic
Moments Vodka, 8PM Whisky, Old Admiral brandy, Contessa XXX Rum. The company is
also one of the largest providers of branded IMFL to the Canteen Stores
Department (CSD).
The company has reported a net profit of Rs. 227 cr. against
the net sales of Rs. 2427 cr in FY 2019-20. Also, the company has reported
continuous profits of Rs. 44 cr, 72 cr, and 80 cr, in Q1, Q2, and Q3 of FY
2020-21 respectively. The company is expected to report Profit in Q4, FY 202-21
also. It is listed in both NSE and BSE with its symbol “RADICO”.
Update 01.10.2023
Market capital reached 16096 crore rupees and net profit reached 220 crore rupees in 2023
Associated Alcohol and Breweries Limited
The company was established in 1989 and headquartered in
Kolkata. The company is the leading supplier of Indian-made India Liquor (IMIL)
to the Government of Madhya Pradesh.
The company has a market capitalization of Rs. 779 cr. The
company has reported a net profit of Rs. 49 cr. with net sales of Rs. 522 cr.
in FY 2019-20. The company has also reported continuous profits of Rs. 4 Cr,
Rs. 13 cr, Rs. 24 cr, in Q1, Q2, and Q3
of FY 2020-21 respectively. It is
expected to report a profit in Q4 FY 2020-21 too.
The stock price has doubled since its listing in Jun’20 at
Rs. 210 to Rs. 420 on May 21. The
company is listed in both NSE and BSE and its symbol is “ASALCBR”.
Update 01.10.2023
Market capital reached 847 crore rupees and net profit reached 41 crore rupees in 2023
Globus Spirits Limited
Globus Spirits Limited was established in 1992 headquartered
in New Delhi. The company is catering to four important segments of the alcohol
industry- Indian Made Foreign Liquor (IMFL), Indian Made Indian Liquor(IMIL),
IMFL Bottling, and Bulk Alcohol.
It is one of the Top 10 Distilleries and Wineries in India.
Its market cap is Rs. 931 cr. The company has reported a net profit of Rs. 49
cr with net sales of Rs. 1168 cr. in FY 202-21. The company has also reported
continuous profits of Rs. 18 Cr, Rs. 33 cr,
Rs. 38 cr, in Q1, Q2, and Q3 of FY 2020-21 respectively. It is expected to report a profit in Q4 FY
2020-21 too.
The stock is listed in both NSE and BSE and its symbol is “GLOBUSSPR”.
Update 01.10.2023
Market capital reached 2528 crore rupees and net profit reached 42 crore rupees in 2023
Also Read
Key Takeaways:
Alcohol Industries have grown quite well in India and have
performed even in the bad times of pandemic. Certainly, the restrictions
imposed by states are a barrier, however, alcohol and wine shops were allowed to
open in many of the Indian states during the time of Lockdown and ‘Janta Curfew’.
This has proven this industry as evergreen. That is why, all the companies
mentioned above have reported profits in all the quarters of FY 2020-21.
The companies may be considered as a long-term investment
option as there is rarely a downfall in this industry. Do share your thoughts
and opinions in the comments section below and let us know what you think. Also
mention if you want me to bring you an article on Top 5 stocks of any other industry
or sector.
Update 01.10.2023
New Entry :
SULA VINEYARDS - CMP 464
Market capital - 3919 crore
Net profit - 84 crore
Became a profit making company from loss making company.
Disclaimer:
This article is intended for informational purposes only, and should not be considered financial advice. You should consult a financial professional before making any major financial decisions.
1 Comments
Nice blog
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