Oct 28 2023, 10:24
4 liquor stocks from sin tax to prohibition:
In a large number of countries across the world, liquor is a heavily taxed business. Despite being heavily taxed, if one looks at the long term trends, it is business which grows at a certain rate irrespective of all headwinds.
In India, liquor is a state subject and many state governments publicly say they don't want to grow, but if one looks at their revenue collection numbers it is clear they cannot stay without it.
A bottle of liquor is a particular brand which cost Rs 400 in one state may cost as much as Rs 1200 in another.
Because it is a business which gets a good part of the state government's revenue, they don't want to lose their power to tax liquor business and it is still out of the ambit of GST.
One of the reasons, over the years, these companies have been able to build one or two strong brands which ensures that they are able to manage headwinds. A big factor in this business is the establishment of the brand. History is filled with examples.
State governments try to tax at maximum rates, what happened in the initial phase of covid lockdowns, it is clear that the state governments have released that they cannot tax it beyond a point.
The list comprises companies with a target upside potential of up to 35 percent from the Breweries & Spirits sector. The stocks collated with data from the latest Stock Reports Plus report dated Oct 27, 2023.
Alcoholic Beverages Stocks - Upside potential
Oct 27, 2023
MISSING: summary MISSING: current-rows.
Company Name Avg Score Reco Analyst Count * Upside Potential % Inst Stake % Market Cap Type Market Cap Rs Cr
Radico Khaitan 3 Hold 9 35.5 30.3 Mid 16,381
United Breweries 2 Hold 16 23.5 19.2 Large 41,530
Sula Vineyards 6 Strong Buy 3 20.3 24.0 Mid 3,860
United Spirits 7 Hold 22 18.7 19.7 Large 73,502
Radico Khaitan Limited manufactures alcohol and alcoholic products. The Company is engaged in the manufacturing and trading of alcoholic products, such as Indian-made foreign liquor (IMFL) and country liquor.
United Breweries Limited is a beer company. The Company's segments include Beer and Non-alcoholic beverages. The Company offers a range of beer brands, such as Kingfisher Premium, Kingfisher Strong, Kingfisher Ultra, Kingfisher Ultra Max, Kingfisher Ultra Witbier, Kingfisher Storm, Kingfisher Blue, Heineken, Amstel Bier, Sol, Affligem, Edelweiss, Desperados, Bullet, Cannon 10000, Zingaro, Kalyani Black Label, UB Export Strong, London Pilsner and London Pilsner Strong.
United Spirits Limited is a company, which is engaged in the business of manufacture, purchase and sale of beverage alcohol and other allied spirits.
Sula Vineyards Limited is a wine producer and seller. The Company's business is classified under two categories: the production of wine, the import of wines and spirits, and the distribution of wines and spirits.
source: et
Oct 28 2023, 10:24
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