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Best Liquor Stocks For Jan 2025: Tilaknagar Industries, Radico Khaitan, United Spirits and More- Based on 5Y CAGR

Updated on: Jan 2, 2025, 3:05 PM IST
The sales of alcoholic beverages are expected to grow at a 7.2% CAGR during 2024-2024 and the spirits segment to reach a remarkable US$ 50,552.1 million by 2034.
Best Liquor Stocks For Jan 2025: Tilaknagar Industries, Radico Khaitan, United Spirits and More- Based on 5Y CAGR
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India’s alcohol industry is significantly shaped by evolving demographics and lifestyles. As the young population grows and urbanization increases, the demand for alcoholic drinks is rising, especially among younger individuals who see alcohol consumption as an integral part of socializing and entertainment.

Overview of Alcoholic Beverages Industry in India

India’s alcohol industry is projected to reach a value of US$ 55,840.0 million by 2024. The sales of alcoholic beverages are expected to grow at a 7.2% CAGR throughout the forecast period, reaching US$ 112,338.9 million by 2034. The demand for spirits such as vodka, whisky, and rum remains exceptionally strong in the country. According to the latest industry analysis, the spirits segment is expected to reach a remarkable US$ 50,552.1 million by 2034.

The rising demand for premium and imported brands, along with the growing popularity of craft spirits and microbreweries, is likely to drive the expansion of the alcohol industry in India. Additionally, the increasing appeal of experiential drinking venues that cater to a wide range of consumer preferences is expected to further fuel alcohol sales in the nation.

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Best Liquor Stock Based on 5Y CAGR

Company Name Market Cap (In ₹ Crore) 5Y CAGR (%)
Tilaknagar Industries Ltd 8,136.50 99.19
Radico Khaitan Ltd 34,545.33 51.75
Globus Spirits Ltd 2,528.10 44.80
Som Distilleries and Breweries Ltd 2,159.20 38.83
United Spirits Ltd 1,20,711.15 22.69

Note: The stocks have been sorted based on 5Y CAGR and as of January 02, 2024

Overview of 5 Best Liquor Stocks

1. Tilaknagar Industries Ltd

Tilaknagar Industries Ltd. is primarily engaged in the manufacturing and sale of Indian Made Foreign Liquor (IMFL). The Company sells over 15 different brands of brandy, whisky, gin, rum, and vodka. During Q2 FY25, the company delivered its highest-ever EBITDA at ₹66 crore. The company’s margins expanded due to the superior brand mix as well as cost optimisation initiatives.

Key Metrics:

  • Return on Equity (ROE): 24.6%
  • Return on Capital Employed (ROCE): 22%

2. Radico Khaitan Ltd

Radico Khaitan is one of the most recognised IMFLs. It was formerly known as Rampur Distillery Company and was focused on distillation and bottling for branded players and canteen stores of the armed forces. The strategic growth drivers of the company mainly include a strong and growing premium product portfolio driven by consumer preferences. The growth driver also includes successful launches in the luxury space with Indian single malt and Indian craft gin.

Key Metrics:

  • ROE: 11.3%
  • ROCE: 13.2%

3. Globus Spirits Limited 

Globus Spirits Limited is engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol hand sanitiser, and Franchise Bottling. The company is on track to surpass revenue of ₹100 Cr in FY25. In addition, the Delhi dispatches were affected end of Q2 due to the transition to a new portal by the Delhi excise.

Key Metrics:

  • ROE: 10.4%
  • ROCE: 9.56%

4. Som Distilleries & Breweries Ltd

Som Distilleries & Breweries Ltd. is one of the leading alcoholic beverages manufacturers in India involved in the manufacturing and sale of Beer and Indian Made Foreign Liquor (IMFL). The Q2FY25 underscored another strong performance of the company which was backed by its ongoing focus on operational efficiency and strategic market positioning. The company’s total income reached Rs 2,910 million, indicating a growth of 17.3% YoY.

 Key Metrics:

  • ROE: 18.4%
  • ROCE: 19.4%

5. United Spirits Ltd 

United Spirits Ltd.(USL) is one of the leading beverage alcohol companies and a subsidiary of global leader Diageo PLC. It manufactures, sells, and distributes a wide portfolio of premium brands. During Q2 FY25, the company recorded a marginal rise in the profit after tax (PAT) to ₹341 crore against ₹339 crore reported in Q2 FY24. The company’s revenue from operations also witnessed a fall of ~1%.

Key Metrics:

  • ROE: 21%
  • ROCE: 27.9%

Conclusion

Investing in liquor stocks can offer significant opportunities, particularly as the industry continues to benefit from growing consumer demand, premiumisation trends, and the rise of new drinking experiences. However, potential investors should carefully consider the volatility associated with the sector.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jan 2, 2025, 3:05 PM IST

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