GST, not highways' sales ban, a concern for liquor stocks

United Spirits and Radico Khaitan could see margin erosion under GST, estimate analysts

The Supreme Court (SC) on Friday gave its nod to implement the ban on liquor sales within a 500-metre radius of national/state highways with effect from April 1. Although the SC gave some relief by reducing the distance to 220 metres for areas with a population of up to 20,000, this ban will impact the performance of spirit makers — United Spirits and Radico Khaitan, among others, believe analysts. "Our industry checks suggest the Supreme Court ban on liquor outlets near highways announced in January has affected about 30-40% of outlets," said Avi Mehta, analyst at India Infoline. Retailers have