Liquor stocks raise a toast to premiumisation trends, margin gains

Already outperformers in FY24, leading listed players may witness further uptick, say analysts

The stocks of India’s biggest listed alcoholic beverage manufacturers are reaching record highs, driven by expectations of increased realisations due to premiumisation trends, a slight reduction in raw material costs for the beer segment, and promising growth prospects.

United Spirits has seen the most significant rally in this financial year to date (FY24YTD), witnessing a return of 46 per cent. United Breweries and Radico Khaitan have also rewarded investors with returns of 33 per cent and 40 per cent, respectively. These stocks have outperformed their peer index, the Nifty FMCG, and the benchmark, both of which have delivered a 25