GM Breweries, Associated Alcohols & Breweries, Radico Khaitan, Globus Spirits and United Breweries and United Spirits were up in the range of 4 per cent to 11 per cent in the intra-day deal today. At 09:40 am, the S&P BSE Sensex was down 4.6 per cent or 1,533 points at 32,184 on the BSE.
According to the Union Home Ministry notification, the liquor shops will be allowed to open in all the three zones, i.e red, orange and green. Liquor stores will not be allowed in containment zones across the country.
Analysts have estimated a volume decline in January-March quarter (Q4), driven by the lockdown.
“For United Breweries, we estimate a volume decline of 15 per cent driven by the lockdown and lower volume in Andhra Pradesh. The gross margins to expand due to higher pricing, however lower sales would result in an operating margin decline,” Emkay Global Financial Services said in a Q4 preview.
For United Spirits, the brokerage firm estimate volumes to decline by 9 per cent, with P&A decline at 6 per cent and Popular decline at 12 per cent. The gross margin to expand on account of lower Extra Neutral Alcohol (ENA) prices. The operating margins to expand year-on-year on lower employee costs and other overhead expenses, it added.