Business Daily from THE HINDU group of publications
Thursday, Aug 07, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Thursday, Aug 07, 2008 ePaper | Mobile/PDA Version | Audio |
|
|
|
|
|
Markets
-
Stocks Industry & Economy - Breweries Our Bureaus Kolkata/Bangalore, Aug. 6 Liquor stocks have been on a high until Wednesday when some profit booking emerged after over a month. With upbeat consumerism continuing to pep up demand for alcoholic beverages and a series of favourable regulatory reforms, such as ban on country liquor in Karnataka and recent price hike in the States such as Tamil Nadu, Karnataka, Uttar Pradesh, Punjab and Madhya Pradesh in the range between 5 and 10 per cent, some market players have been betting on IMFL manufacturing companies. According to Mr Amitabh Chakraborty of Religare, demand for liquor industry as such is inflation-proof. In July, some of the market players in their search for stocks, which could beat high inflationary pressure, discovered that liquor consumption and margins for the manufacturers have not dented at all by the rising price levels. Mr Arun Kejriwal of KRIS said that a group of smart investors have been accumulating these stocks. Analysts also said the first quarter results have also been good and confirmed the growth in revenue and earnings. Cost pressureThough molasses prices have shot up by 40 per cent in the past one year, IDFC-SSKI, in a recent report, expected that margin decline to be minimal given the recent price hikes, rapid business scale up and other ways such as contract farming. According to industry sources, while the bigger players could scale up margins through greater in roads of premium products, smaller players handled the cost pressure by way of increased volumes and cost controls. Consolidation in the industry in the recent past has helped the players to withstand fluctuations, analysts said. In the past one-month period, counter of United Breweries, having around 48 per cent share in the domestic beer market, has shot up over 45 per cent. UB Holding appreciated by 22 per cent, Som Distilleries (46 per cent), Pioneer Distilleries (39 per cent) and Balaji Distilleries gained 48 per cent. According to market observers, there were no data to suggest how retail investors have responded to the price appreciation post June 30 in these stocks. However, anecdotal evidences indicate that small investors may have sold some of these stocks, while institutional investors or HNI may have entered. “Smart investors always are way ahead of retail investors in seeing the opportunity in a changing situation,” Mr Kejriwal added. More Stories on : Stocks | Breweries
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2008, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
