India-UK trade deal pushes this liquor stock to 9-month high; do you own?

Globus Spirits share price hit a nine-month high of ₹1,275 today, surging 6 per cent on the BSE in Friday's intraday trade. Find out why the liquor stock is rising on India-UK FTA deal

Globus Spirits share price today

 

Globus Spirits shares hit a nine-month high of ₹1,275 today, surging 6 per cent on the BSE in Friday's intraday trade, in an otherwise weak market on expectation of earnings improvement going ahead.

 

The stock price of the liquor company was quoting at its highest level since October 2024. It had hit a 52-week high of ₹1,373.35 on September 17, 2024.

 

Thus far in the calendar year 2025, Globus Spirits stock has outperformed the market by appreciating 47 per cent. In comparison, the BSE Sensex was up 3.9 per cent during the period.

 

At 11:50 am, Globus Spirits shares were trading 5 per cent higher at ₹1,265.05 as against a 0.81 per cent decline in the benchmark index.

 

What's driving Globus Spirits stock price today?

 

India and the United Kingdom (UK), on Thursday, signed a Free Trade Agreement (FTA) that includes provisions to make business mobility easier for professionals, investors, and service suppliers moving between the two countries.

 

The two countries announced reduction in tariff on scotch whisky or gin, which is expected to be cost effective for Indian liquor manufacturing companies. Most of these companies imports scotch in bulk quantity to blend with their premium liquor brands. Hence reduction in tariff will help to reduce the import cost of raw material. India will be cutting tariffs on scotch whiskies and gin imported from UK from 150 per cent to 75 per cent, following it to 40 per cent over a period of 10 years. 

 

"The reduction tariff on scotch whisky provides cost opportunity rather than significant risk on sales volumes of the premium products in the near-term. Any foreign brand trying to enter the Indian market does not have distribution presence in the country and will try to enter into the Indian market through potential tie-up with the Indian company," ICICI Securities said in a note.

 

"The India-UK FTA is poised to unlock significant opportunities across key consumer sectors. In alcoholic beverages industry, the biggest beneficiary will be UK-based scotch brands, with high import tariffs seeing a sharp reduction. Given India's evolved whisky-drinking market, this will encourage both established players and new entrants to expand their global portfolio offerings here," said Anand Ramanathan, partner, consumer products and retail sector leader, Deloitte India.

 

India is one of the fastest-growing alcohol markets in the world with the market being dominated by whisky followed by beer, and wine. The Indian spirit industry has faced many disruptions in recent years, including excise duty hikes across states, changes in route-to-market in some states, demonetisation, levy of Customs Duty on imports, administration of national regulations, and GST implementation.

 

"Even after facing turbulent times, the industry is poised for strong growth as there are several tailwinds which will drive the demand for the coming years," Globus Spirits had said in its FY24 annual report.

 

Meanwhile, analysts at InCred Equities have a 'Add' rating on Globus Spirits stock with a target price of ₹1,584, valuing it at 15x FY26F EPS. 

 

About Globus Spirits

 

Globus Spirits is primarily engaged in the business of manufacturing and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol, Hand Sanitizer and Franchise Bottling.