Stories
India-UK FTA Boosts Liquor Stocks as JPMorgan Bullish on United Spirits
- •Alcoholic beverage stocks including United Spirits and Tilaknagar Industries rose up to 4 percent following the implementation of the India-UK Free Trade Agreement.
- •The trade pact is expected to lower tariffs on Scotch whisky imports, supporting premiumisation trends and creating value across the domestic spirits supply chain.
- •JPMorgan maintained an Overweight rating on United Spirits with a target price of Rs 1,510, citing constructive growth outlook for FY27 and potential upside from the UK FTA.
- •Industry bodies like ISWAI welcomed the agreement for strengthening bilateral trade, while CIABC urged state governments to withdraw concessions on bottled-in-origin brands to protect domestic products.
Key Questions Answered
Shares of major alcoholic beverage companies rose by up to 4% after industry bodies welcomed the implementation of the India-UK Free Trade Agreement. Gainers included United Spirits up 3.98%, Tilaknagar Industries up 3.3%, Associated Alcohols & Breweries up 2.1%, Piccadily Agro up 1.5%, and Radico Khaitan up 1.3%.
JPMorgan maintained an Overweight rating on United Spirits with a target price of Rs 1,510, citing a constructive FY27 growth outlook backed by double-digit P&A growth aspirations, brand refreshes, and potential upside from the UK FTA.
The Confederation of Indian Alcoholic Beverage Companies welcomed the agreement but urged state governments to withdraw existing concessions for bottled-in-origin brands. They argued that sliding import duties could otherwise make imported alcohol cheaper than domestic products.
