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Top 5 Alcohol Stocks In India to invest in 2021 | Best Breweries and Distilleries companies of India

Updated: | Sat, 22 May 2021 04:46 PM (IST)


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.

Top 5 Alcohol Stocks in India


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”.

 

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”.


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”.

 

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”.


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.


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.

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