Jefferies has initiated coverage on three major Indian alcoholic beverage companies—Allied Blenders and Distillers, Radico Khaitan, and United Spirits—with a Buy rating for all three.
The global brokerage identified significant upside potential, estimating gains of up to 25% for the stocks based on current valuations and sector momentum.
The group delivered an earnings per share (EPS) compound annual growth rate (CAGR) exceeding 30%, contrasting sharply with the mid-to-high single-digit growth seen in the wider staples category.
The bullish stance is underpinned by the sector's robust financial performance over the past three years.
Jefferies highlighted that Indian alcohol stocks have significantly outperformed the broader consumer staples sector during the FY23–FY26 period.
The group delivered an earnings per share (EPS) compound annual growth rate (CAGR) exceeding 30%, contrasting sharply with the mid-to-high single-digit growth seen in the wider staples category.
This initiation comes as Indian equity indices show signs of bullish potential, with the Nifty and Sensex poised for potential breakouts.