HDFC Securities initiates India's alcohol industry; prefers Radico Khaitan, United Spirits

United Breweries

08/09/2026 06:12

** HDFC Securities starts coverage of India's alcoholic beverages sector, saying it is entering a decade of structural change, driven by regulatory shifts, demographics and premiumization
** Rates Radico Khaitan RADC.NS, United Spirits UNSP.NS and Tilaknagar Industries TILK.NS with "Buy"; PTs at 5,300 rupees, 1,750 rupees and 700 rupees, respectively
** Starts Allied Blenders and Distillers ALLE.NS with "Add", PT at 685 rupees; United Breweries UBBW.NS with "Reduce", PT at 1,325 rupees
** Sees UNSP benefiting from Indian spirits growth and parent Diageo's DGE.L premium global portfolio
** Says RADC's enhanced execution will continue to get regulatory support; potential market openings in Bihar and Tamil Nadu state could support growth and margins
** Expects TILK to accelerate premium-and-above innovation and brand investment, aided by debt repayment  
** Says ALLE needs to diversify growth beyond a single brand
** Remains cautious on UBBW due to competition, regulatory hurdles and supply rebalancing

 (Reporting by Mridula Kumar in Bengaluru)
 ((Mridula.Kumar@thomsonreuters.com;))