The Indian spirits market is vast, protected by high entry barriers created through complex state-level regulations, providing a strong competitive moat for established players. While overall industry growth remains in mid-to-high single digits, the Prestige and Above (P&A) segment is expanding rapidly, driving opportunities for listed companies.
Premiumisation is proving to be a key profitability driver, with scotch whisky and white spirits growing at a 15–20% CAGR. Improved regulatory conditions, including lower taxes on premium products and retail privatisation in some states, have boosted the sector. However, Maharashtra’s recent tax hike highlights the unpredictability of state-level policy decisions.
Risks include unfavorable regulatory changes, weaker consumer sentiment, and rising input costs like ENA and glass. Despite these challenges, Jefferies expects the spirits industry to deliver strong growth. Major companies are projected to achieve double-digit revenue CAGR and expand margins significantly, supported by premiumisation trends and evolving consumer preferences.
Here are the alcohol stocks in which Jefferies has a bullish stance;
1. United Spirits Ltd
United Spirits Limited is a leading beverage alcohol company in India that manufactures, sells, and distributes an outstanding collection of iconic global and premium Indian brands. The company’s core business strategy focuses on pioneering grain-to-glass sustainability, championing diversity, and promoting responsible consumption of its products.
With a market capitalization of Rs 95,330.24 crore, the shares were trading at Rs 1,310.65 per share, increasing around 0.10 percent as compared to the previous closing price.
Jefferies, one of the well-known brokerages globally, gave a ‘Buy’ rating on this alcohol stock with a target price of Rs 1,570 apiece, indicating a potential upside of 20 percent from Monday’s price of Rs 1,314 per share.
Jefferies sees a favourable risk-reward opportunity after the stock’s over 20% correction. Despite short-term pressure from Maharashtra’s liquor tax hike, the brokerage remains positive, projecting around 13% compounded annual EPS growth between FY25 and FY28. This outlook highlights resilience, strong fundamentals, and long-term growth potential, making it an attractive investment despite near-term challenges.
2. Radico Khaitan Ltd
Radico Khaitan is one of India’s oldest and largest spirits companies, known for brands like 8 PM Whisky and Magic Moments Vodka. Its ‘Indi-Lux’ vision celebrates Indian heritage by taking world-class, homegrown luxury and premium spirits to the global stage. The company has a significant global footprint, with a presence in over 100 countries.
With a market capitalization of Rs 39,251.96 crore, the shares were trading at Rs 2,932.15 per share, increasing around 2.14 percent as compared to the previous closing price.
Jefferies, one of the well-known brokerages globally, has initiated coverage with ‘Buy’ ratings on this alcohol stock with a target price of Rs 3,500 apiece, indicating a potential upside of 22 percent from the previous closing price of Rs 2,870.65 per share.
Jefferies projects this top pick to lead growth among peers, forecasting over 35% CAGR in earnings per share between FY25–28. Alongside, improving RoCE is seen as enhancing financial strength. Supported by these fundamentals, the stock commands a premium valuation of 62x forward earnings, reflecting investor confidence in its sustained growth potential and long-term value creation.
3. Allied Blenders and Distillers Ltd
Allied Blenders and Distillers is a leading Indian spirits company, which started its journey in 1988 with the launch of its famous Officer’s Choice Whisky. The company’s vision is to become the most admired spirits company in the world by creating valuable brands through innovation, individuality, and ethical business practices.
With a market capitalization of Rs 15,733.70 crore, the shares were trading at Rs 562.50 per share, increasing around 3.05 percent as compared to the previous closing price.
Jefferies, one of the well-known brokerages globally, has initiated coverage with ‘Buy’ ratings on this alcohol stock with a target price of Rs 620 apiece, indicating a potential upside of 14 percent from the previous closing price of Rs 545 per share.
Jefferies sees Allied Blenders and Distillers as a “dark horse” with significant upside potential, though success hinges on strong execution. The brokerage values the stock at 44 times projected September 2027 earnings, reflecting optimism on growth but highlighting execution risks.
Written by Abhishek Singh
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