Updated Mar 17, 2026 16:10 IST
Liquor Stock: Brokerage firm JM Financial has given a Buy rating while initiating coverage on liquor sector company Tilaknagar Industries…
highlights
- Brokerage is bullish on liquor manufacturing company Tilaknagar Industries.
- Brokerage firm JM Financial has given a Buy rating on Liquor Stock.
- Along with this, the brokerage has also given a target of about 25% upside.
Liquor Stock: Brokerage firm JM Financial has given a Buy rating while initiating coverage on liquor sector company Tilaknagar Industries. The brokerage has set a target price of ₹550 for the stock, suggesting an upside of around 22-25% from current levels. After this news, a rise of more than 3.6% was seen in the stock on Tuesday.
Company making strong hold in IMFL segment
The brokerage said that Tilaknagar Industries has today become one of the top spirit companies of India and is rapidly strengthening its hold in the IMFL (Indian Made Foreign Liquor) segment. The company is particularly strong in key segments such as whiskey and brandy, which cover a large share of the industry. The company’s portfolio includes big brands like Mansion House and Imperial Blue, which hold a good position in different price segments.
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Big bet on premiumization
The brokerage believes that the biggest strength of the company is its focus on premiumization. Over the years, Tilaknagar has not limited its portfolio to just brandy but has also expanded into fast-growing segments like whiskey and white spirits. The acquisition of Imperial Blue and investment in Spaceman Spirits has given the company entry into new segments. With this, the company’s business has now become more diversified and scalable, which will support further growth.
Strong brand and stable business model
The company’s journey has been full of ups and downs, but in the last few years it has succeeded in stabilizing its business. Between FY20 to FY25, the company has registered sales growth at a CAGR of about 16.6%, while volume growth has also been more than 13%. In the coming times also, the company can continue this growth on the basis of its strong brands and better distribution network.
Imperial Blue deal expected to change the game
The acquisition of Imperial Blue could prove to be a big turning point for Tilaknagar Industries. This brand already has a strong presence in the lower prestige segment and can become a major source of volume growth for the company. After this deal, the total business size of the company has increased significantly and now it has become one of the top 5 spirit companies in the domestic market.
Focus on volume growth and new markets
According to the brokerage, the company will pay special attention to volume growth in the coming times. For this, investment on branding is being increased and there are plans to expand into new markets. Apart from the states of South India, the company is now expanding its presence in other areas also, due to which its total addressable market has become quite large.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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