In the current volatile market scenario, investors are constantly on the lookout for sectors that offer resilience, consistent demand, and strong margins.
One such sector that often flies under the radar but holds immense potential is the alcoholic beverage industry.
Despite economic fluctuations and shifting consumer preferences, liquor companies tend to enjoy stable revenue streams, strong brand loyalty, and high barriers to entry—making them attractive long-term investments.
While global giants like Diageo (United Spirits) and Constellation Brands often dominate headlines, several smaller or less-hyped players offer compelling value propositions, particularly when they are trading below their intrinsic value.
These undervalued liquor stocks may be overlooked due to temporary setbacks, broader market corrections, or simply because they operate in niche markets.
Yet, they possess strong fundamentals, robust distribution networks, and the potential for significant upside as market sentiment shifts.
In this article, we’ll spotlight four undervalued liquor stocks that investors should keep on their radar. These stocks are worth adding to your watchlist, as they present potential opportunities for significant returns in 2025 and beyond.
Whether you’re a value investor hunting for bargains or a growth-minded trader looking for overlooked gems in the consumer staples sector, these stocks merit a closer look.
Read on…
#1 G.M. Breweries
G M Breweries Ltd, set up in 1981 manufactures and markets Alcoholic Beverages such as Country Liquor (CL) and Indian-made Foreign Liquor (IMFL).
The company has a monopoly in country liquor in the districts of Mumbai, Thane and Palghar. It’s the single largest manufacturer of country liquor in Maharashtra with a sizable market share.
G.M. Breweries contributes about 25-30 % of the total excise duty for country liquor in the whole of Maharashtra indicating the potential market share of the company.
The company has a fully automatic plant at Thane, Maharashtra with a capacity to produce about 50,000 cases a day from 200 cases a day at the start.
G.M Breweries owns and distributes its liquor under the brands such as G.M. Santra, G.M. Doctor, G.M. Limbu Punch and G.M. Black.
In the last few years, the company has concentrated on country liquor to capture the growing demand in rural areas. It also received a license from the food and drugs administration to manufacture hand sanitisers.
Coming to the financials, G.M breweries reported a flat 2.7% growth in revenue in 9MFY25 and EBITDA growth came in at 8.2%. EBITDA margins also improved slightly from 4.6% in 9MFY24 to 4.8% in 9MFY25.
The stock is trading at 11.9 times on trailing twelve months price to earnings ratio compared to industry average of 29.6 times.
Shares of G.M. Breweries have returned 7% for the past 1 year on the back of muted operational and financial performance.
G.M. Breweries Share Price – Last 1 Year
#2 Associated Alcohols & Breweries
Associated Alcohols & Breweries is in business of manufacturing and trading of ENA, Indian made Indian liquor (country liquor), Indian made foreign liquor, and hand sanitisers.
The company is a prominent player in the liquor industry, with a significant presence in Madhya Pradesh, holding a 20-25% market share in IMIL and IMFL products.
Additionally, it ranks among the top 5 IMFL players in Kerala and is the world’s first producer of white brandy.
The company owns a portfolio of 9 proprietary Indian made foreign liquor (IMFL) and Indian made Indian liquor (IMIL) brands, including central province, Jamaican magic rum, Bombay special, titanium triple, superman fine, James McGill, Le mount, Nicobar, Hillfort.
it derives 54% of its revenues from IMFL & IMIL, 24% from sale of ethanol (by product), 12% from merchant ENA and 10% from others.
The company operates in 5 states including Madhya Pradesh, Kerala, Delhi, West Bengal, and Chhattisgarh, and plans to expand into Maharashtra, Puducherry, Assam, Tripura, and Goa. It also operates the largest integrated manufacturing facility at a single location, spanning 150 acres in MP.
Coming to the financials, In 9MFY25, Associated Alcohols clocked in a whopping 279.9% growth in revenue YoY, making it the company’s strongest nine-month performance to date. EBITDA also grew substantially by 250.6% with margins deteriorating from 11.7% in 9MFY24 to 10.9% in 9MFY25.
Going ahead, the management guides for revenue growth in the range of 11-15% excluding ethanol for FY26 with EBITDA margins guidance of 11-13% band.
The stock of Associated Alcohols & Breweries Ltd is currently trading at 25.8 times on trailing twelve month price to earnings ratio as compared to industry PE of 29.6.
Stock of the company has been returned 109% over the past 1 year on the back of exceptional performance.
Associated Alcohols & Breweries Share Price – Last 1 Year
#3 Som Distilleries & Breweries
Incorporated in 1993, Som Distilleries & Breweries is one of the leading manufacturers in India of beer and Indian made foreign liquor.
The company is the flagship company of Bhopal, Madhya Pradesh based Som group which is into distillery business, real estate, and infrastructure.
The product portfolio consists of beer, rum, brandy, vodka and whisky. The company has three key millionaire brands namely Hunter, Black Fort, and Power Cool. Som derives 93% of its revenues from beer segment and the balance 7% from Indian made foreign liquor.
The company has manufacturing facilities located in Bhopal, Madhya Pradesh, Karnataka, and Odisha and has a total installed capacity of beer: 30+ m cases p.a. and IMFL: 3.9 m cases p.a. The company also exports its products to 24+ countries.
Som Distilleries and Breweries is establishing a major greenfield project Farrukhabad district, UP, with an estimated investment of around Rs 6 billion (bn). This project will include a brewery, distillery, and other manufacturing facilities on a 40-acre land parcel.
Coming to the financials, it has reported a growth of 24.5% in its revenues for 9MFY25, and profit after tax grew by 21.4% for the 9 months. EBITDA margins improved slightly coming in at 6.3% for 9MFY25 versus 6.2 % in 9MFY24.
The stock of Som Distilleries is currently trading at a price earnings ratio of 24.9 times compared to industry PE of 29.6 times.
Shares of Som Distilleries have returned 7% for the past 1 year on the back of decent performance.
Som Distilleries & Breweries Share Price – Last 1 Year
#4 Aurangabad Distillery
Incorporated in 2000, Aurangabad Distillery Ltd is in the business of production of distillery variants.
The company operates a molasses based distillery where it performs PLC based distillation and manufactures spirit which contains 95% alcohol by nature and also manufacture alcohol by the process of rectification.
It has a diversified product portfolio, including rectified spirit, neutral alcohol, potash, bio potash, and de potash vinasse. The company’s products are used in diversified sectors, including liquor, pharma, cosmetics, and fertiliser.
Aurangabad Distillery has its manufacturing facility located at Walchandnagar, Maharashtra with a capacity of 180 lac litres annually.
The company derives 97% of its revenues from sale of products (including exports), 1% from sale of services, and balance 2% from other income.
In the past three years, the company’s revenue has grown at a CAGR of 13.7%, driven by strong growth in volumes. The net profit also saw a healthy growth of 75.7% during the same period.
Its RoE and RoCE have improved from 7.6% and 15.3% to 25.2% and 36.5%, respectively, in the last three years.
The stock trades at a step discount to the industry PE. Valuation of the stock is at 10.2 times trailing twelve months PE ratio as against industry PE of 29.6 times.
Shares of the company have returned negative 32% since listing.
Aurangabad Distillery Share Price – Since Listing
Conclusion
In an industry often dominated by global conglomerates, these undervalued liquor stocks present an opportunity for those seeking exposure to the resilient alcoholic beverage sector.
Each of these companies boasts distinct competitive advantages, from regional monopolies and strong distribution networks to promising expansion plans and robust financial turnarounds.
Despite temporary setbacks or limited market visibility, their valuations remain attractive relative to the broader industry, with potential for substantial upside as operational performance improves and investor sentiment shifts.
For value-seeking investors looking to diversify into consumer staples with defensive characteristics, these lesser-known liquor stocks deserve a place on the watchlist.
These stocks deserve close attention as part of a broader, diversified investment strategy aimed at capturing long-term value.
With careful monitoring and deep digging, these companies may continue to deliver solid returns in the future, making them worthy additions to your watchlist.
Investors should remain vigilant, conducting thorough research and keeping abreast of market trends to ensure they make informed decisions.
Remember the challenges before diving headfirst.
Happy Investing.
Happy investing.
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