Best Liquor Stocks in India in October 2024 Based on Net Margin

In the past few years, the alcoholic beverages industry in India has witnessed exceptional growth. This growth was fueled by numerous factors, including rapid urbanisation, evolving consumer preferences, a youthful demographic, a burgeoning middle class with increased purchasing power, and a rising inclination towards premium alcoholic beverages. In this article, check out the best liquor stocks in October 2024 based on net margin.

Best Liquor Stocks in October 2024 – Based on Net Margin

Note: The stocks have been selected from the Alcoholic Beverages sector with a market capitalisation of a minimum ₹5,000 crore and sorted based on 5Y CAGR as of September 04, 2024.

Overview of 5 Best Liquor Stocks

1. . United Spirits Ltd: United Spirits Ltd is engaged in the manufacturing, sale, and distribution of 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. During Q1 FY25, the company delivered on its margin aspirations by successfully countering inflation through efficiencies across the value chain and revenue growth management initiatives. The company also delivered an overall portfolio NSV growth of 8.3% during the quarter, within which the P&A growth stands at 10.1%.

Key Metrics:

• ROE: 21%
• ROCE: 27.9%

2. Tilaknagar Industries Ltd: Tilaknagar Industries Ltd. is mainly involved in the manufacturing and selling of Indian Made Foreign Liquor (IMFL). It makes India’s highest-selling premium brandy, Mansion House Brandy. During Q1 FY25, the company achieved the highest-ever EBITDA of ₹50.2 crore, reflecting a YoY growth of 30.8%. 

Key Metrics:

• ROE: 24.8%
• ROCE: 22.1%

3. Radico Khaitan Ltd: Radico Khaitan ventured into its own branded IMFL products and launched its first brand 8 PM whisky which became its millionaire brand within a year of its launch. During Q1 FY25, the company achieved strong premium volume growth despite a challenging operating environment. It launched Rampur Asava, Sangam World Malt and Jaisalmer Gold Edition in India.

Key Metrics:

• ROE: 11.3%
• ROCE: 13.2%

4. United Breweries Limited (UBL): United Breweries Limited (UBL) manufactures and sells beer and non-alcoholic beverages. It markets its products under the flagship brands Kingfisher and Heineken. During Q1 FY25, the company grew its net sales by 9%. The company’s premium volume grew 44% and overall volume grew 5%.

Key Metrics:

• ROE: 10.1%
• ROCE: 13.5%

5. Allied Blenders and Distillers Ltd: Allied Blenders and Distillers is an Indian-made foreign liquor company offering four categories: whisky, brandy, rum, and vodka. The company is the 3rd largest spirits Company in India in terms of annual sales volume. During Q1 FY25, the company recorded strong EBITDA growth of  44.0% to ₹ 76 Cr vs ₹ 53 Cr in Q1FY24, driven by significant improvement in gross margins.

Key Metrics:

• ROE: 0.59%
• ROCE: 15.6%

Liquor Market Outlook

The market size for alcohol in India is projected to reach USD 55.84 billion by 2024. Sales are expected to grow at a compound annual growth rate (CAGR) of 7.2%, reaching USD 112.34 billion by 2034. The demand for spirits such as vodka, whisky, and rum remains exceptionally high. According to recent industry analysis, the spirits segment is forecasted to reach an impressive USD 50.55 billion by 2034.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.