Liquor stocks in high spirits ahead of New Year

All liquors stocks were trading with massive gains in the early trading session with the stocks witnessing an increase of anywhere between 5 to 18 per cent with high volumes. This buzz in liquor stocks comes ahead of the new year party season where consumption grows manifold.

The alcohol & beverages' stocks have faced the brunt of demonetisation drive as people shifted their consumption habit to more basic and necessity goods, rather than on liquor. Consumption of alcohol increases significantly in the country in the last month of the year as sellers stock up large inventory of alcohol ahead of the party demand.

Anticipating an increase in demand and subsequently a good party season is likely to reflect in the Q3 numbers, which have already been impacted by the currency demonetisation drive, where sales were hampered a lot in the month of November.

However, normalcy seems to have been restored in the month of December as cash crunch problems have eased to a large extent, thereby helping the liquor companies to clear off the unsold inventory lying idle post the demonetisation move.

Biggest gainers: -

Pincon Spirit- 18 %

Pioneer Distilleries- 7 %

Ravikumar Distilleries- 6 %

Globus Spirits- 5 %

GM Breweries- 5 %