Shares of United Breweries Ltd rose over 2.9% on Wednesday to trade near ₹2,114.50, even as the Maharashtra government announced a significant hike in excise duties on liquor. While peers like United Spirits and Radico Khaitan fell over 5% and 1% respectively, beer-focused United Breweries defied the broader trend.
The key reason behind the stock’s upmove is the government’s decision to leave excise duties on beer unchanged. The steep increase in duties — up to 50% for Indian Made Foreign Liquor (IMFL) — is expected to impact spirits and premium liquor the most. In contrast, beer prices remain unaffected, positioning United Breweries favorably.
Analysts also note that this could lead to a consumption shift from spirits to beer at the premium level, especially in urban markets like Mumbai and Pune where price sensitivity influences buying behavior. This consumption tailwind, coupled with stable taxation, boosts earnings visibility for the company.
As of 9:46 AM, United Breweries was trading at ₹2,114.50, up ₹47.30 or 2.29%. The stock touched an intraday high of ₹2,134.70, with a market cap of ₹559.77 billion.
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