Radico Khaitan, Som Distilleries, United Spirits Ltd among other liquor stocks advanced in September 19 trade taking a cue from Andhra's new liquor policy which was cleared by state Chief Minister N Chandrababu Naidu on Wednesday.
The cabinet has decided to implement a private retail system for the sale of liquor in an effort to improve management efficiency. Out of the 3,736 retail outlets in the state, 10 percent will be reserved for the toddy-tappers community. The new excise policy is set to take effect from October 1.
By improving retail management and potentially enhancing customer experiences through privatized outlets, liquor companies might see an increase in consumer demand, leading to higher sales volumes.
The listed liquor companies reacted positively to the development and their scrips rose in Thursday's trading session, tracking positive momentum in the segment.
Radico Khaitan share price hit the record all-time high on September 19 to hit Rs 2,332.7 per share on the NSE, zooming 3.43 percent. In fact, Radico Khaitan stock has been gaining for the last 8 days and has risen 15.5 percent in the period. At the time of filing, the stock was trading at Rs 2,261.25 apiece on the NSE, up 0.26 percent at 10.15 am.
United Spirits Ltd share price touched the fresh 52-week high in today's session to hit at Rs 1,570 per share on the NSE, up 2.1 percent.
United Breweries Ltd too advanced, touching an intraday high of Rs 2,150 per share on the NSE, rising 4.92 percent. The stock reacted sharply to rising momentum in the segment. It had been falling consecutively for the last two days.
G M Breweries Ltd share price touched an intraday high of Rs 972.6 per share, advancing 3.7 percent, while Allied Blenders and Distillers Ltd stock opened gap-up with a gain of 2.11 percent, touching an intraday high of Rs 357.25 per share on the NSE, up 3.34 percent. The stock gained after two days of consecutive fall.
Som Distilleries and Breweries Ltd was trading at Rs 116.98 apiece on the NSE, up 0.19 percent at 10.20 am.
The move to privatize liquor retail could be seen as a government effort to liberalize the market, promoting competition and potentially increasing overall sales volumes.
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