Introduction
In India, the beverage industry is diverse, including soft drinks, tea, alcoholic drinks, and more. The country’s best beverage stocks comprise the shares of companies that promise growth potential and profitability within the sector. These companies produce, distribute, and market a large portfolio of beverages.
Before exploring the best picks for beverage stocks in 2024, you must understand how well India’s beverage industry is doing.
Beverage industry in India - A quick overview
India’s beverage industry holds a prominent value. It is dynamic and influenced by diverse cultural traditions, consumer preferences, and a combination of traditional and contemporary drinking habits. Its growth in recent years has been incredible, making it one of the most attractive investment opportunities.
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According to Statista, the number of beverage enterprises is forecasted to increase to 2.65k in 2024. The value addition is projected to amount to USD 4.11 billion, with an expected Compound Annual Growth Rate (CAGR) of 2.28% (2024-2028).
Five best beverage stocks to invest in
​​​​​​​​​​​​​​​​​​​​​1. Varun Beverages
Varun Beverages is an Indian multinational company founded in 1995. It is a bottle manufacturer and beverage distributor. As a PepsiCo franchisee, it is the world’s second-largest bottling company outside the United States. The company exports products to Sri Lanka, Nepal, Mozambique, Morocco, Zambia, and Zimbabwe. Through its extensive network, it distributes popular PepsiCo products to consumers across India.
As of March 18, 2024, the company had a market capitalisation of Rs. 1,86,650 crore. Its face value was Rs. 5, and the sector Price-to-Earnings (PE) ratio was 104.88.
2. United Spirits Ltd.
United Spirits Ltd., or USL, is an alcoholic beverage company founded in 1826. Formerly, it was a trading company known as McDowell and Company. It is a subsidiary of Diageo and the world’s second-largest spirits company by volume. With headquarters in Bangalore, the company offers an impressive portfolio comprising mass-market to premium brands, such as Royal Challenge and McDowell’s No. 1.
United Spirits Ltd. had a market capitalisation of Rs. 80,612 crore and a face value of Rs. 2 as of March 18, 2024. Its sector PE ratio was 74.49.
3. Sula Vineyards
Sula Vineyards is a popular Indian wine manufacturer and seller. It was founded in 1999 and has transformed the perception of Indian wines, enabling it to have global recognition for its premium vintages. Its wine portfolio comprises white, red, rose, and sparkling wine, among others. The most popular names include Riesling, Chenin Blanc, Shiraz, Zinfandel, Viognier, Chardonnay, Syrah, and many more.
The wine manufacturer’s market capitalisation was Rs. 4,543 crore as of March 18, 2024. Its share’s face value was Rs. 2, and the sector PE ratio was 74.49.
4. United Breweries Ltd.
United Breweries Ltd. is the Indian subsidiary of Heineken N.V. It owns many alcoholic beverage brands, including Kingfisher Premium, Kalyani Black Label, Zingaro, and London Pilsner. It also markets and sells other products of the Kingfisher brand, like packaged drinking water, power soda, strong soda, etc. With its headquarters in Bangalore, it is the largest beer producer in India.
As of March 18, 2024, United Breweries Ltd.’s market capitalisation was worth Rs. 45,773 crore, and the share’s face value was Re. 1. It is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) and also available for trading as futures and options.
5. Radico Khaitan
Radico Khaitan is an Indian manufacturer of industrial alcohol, country liquor, Indian Made Foreign Liquor (IMFL), and fertilisers. While it was founded in 1943, it started manufacturing its own brands in 1999. Its portfolio includes popular whisky brands like Rampur Indian Single Malt and 8 PM. Its premium brand image and innovative product portfolio contribute to its promising outlook.
Radico Khaitan’s market capitalisation was worth Rs. 21,056 crore, with a face value of Rs. 2 as of March 18, 2024. Its 52-week high was Rs. 1,885.10, and its 52-week low was Rs. 1,068.55.
Conclusion
You can add the above-mentioned beverage stocks to your portfolio if you are interested in participating in the growth of the beverage industry. The growing demand for beverages and the lasting existence of established brands make this sector an ideal choice for portfolio diversification.
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