Recently, ICRA, a credit rating agency, commented on the Indian ‘Alcohol Beverages’ industry and expects the same to be poised for margin improvements and increasing sales in FY25. The agency projects a revenue growth of 8 to 10 percent for its sample set of domestic alcohol beverage companies.
Indian-made foreign liquor (IMFL) companies are anticipated to foresee revenue expansion in the range of 11 to 13 percent, supported by the preference for premium products as well as volume growth of approximately 3 to 5 percent. Beer companies are expected to witness a revenue jump of 9 to 11 percent YoY, primarily due to a rise in its volumes.
“The industry is expected to benefit from the moderation in input costs, especially packing material (such as glass bottles), which accounts for ~60-65% of an alcobev manufacturer’s cost, even though grain prices, particularly non-basmati rice, are not depicting a favourable trend,” commented Ms. Kinjal Shah, Vice President and Co-Group Head, ICRA.
Listed below are a few stocks associated with the ‘alcohol beverages’ industry that closed their trading session in the green, gaining up to 3.10 percent, post the outlook provided by ICRA:
Tilaknagar Industries Limited
With a market capitalization of Rs 3,797.75 crores, the stocks of Tilaknagar Industries Limited closed its session on Thursday at Rs 197.05, gaining almost 2.10 percent compared to its previous closing price of Rs 193.05 apiece.
According to the latest data available, the company has capital expenditure (Capex) plans of Rs 100 crores which will be used for expansion in Andhra Pradesh. Additionally, Tilaknagar Industries plans to invest Rs 220 crores to increase its capacity, with a significant portion allocated to set up a distilling unit in Rajahmundry.
Globus Spirits Limited
With a market capitalization of Rs 2,072.18 crores, the stocks of Globus Spirits Limited closed its session on Thursday at Rs 718.95, gaining almost 2.30 percent compared to its previous closing price of Rs 703.30 apiece.
According to the latest data available, the company has initiated projects in states like Uttar Pradesh and Orissa, with an estimated capex of around Rs 300 crores, which will further increase its total capacity to 1,200 kilo litres per day (KLPD).
Som Distilleries and Breweries Limited
With a market capitalization of Rs 1,920.32 crores, the stocks of Som Distilleries and Breweries Limited closed its session on Thursday at Rs 247.75, gaining almost 2.70 percent compared to its previous closing price of Rs 241.30 apiece.
According to the latest data available, the company has undertaken strategic expansion plans, through both inorganic and organic growth opportunities, aiming to increase the scale of operations, cost-effectively enter high-growth geographies, and access new clients.
Sula Vineyards Limited
With a market capitalization of Rs 4,530.99 crores, the stocks of Sula Vineyards Limited closed its session on Thursday at Rs 536.85, gaining almost 3.10 percent compared to its previous closing price of Rs 520.95 apiece.
According to the latest data available, the company has been actively investing in its operations to enhance its capabilities and sustainability measures.
Written by Amit Madnani
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