Liquor stocks swing on reports of UP Cabinet approving increase in licence fee

The hike in licence fee though may lead to an increase in prices with effect from April 01, 2020, the media reports said.

Jan 22, 2020 12:01 IST India Infoline News Service

United Spirits
Shares of liquor companies in focus after media reports suggested that the Union Cabinet has approved of increasing the licence fee for country-made liquor in Uttar Pradesh by 10%, for beer by 15% and foreign liquor by 20%. The hike in licence fee though may lead to an increase in prices with effect from April 01, 2020, the media reports said.

Reacting to this news, shares of Tilaknagar Industries, Piccadily Agro and United Spirits were up 2% each, while Radico Khaitan, IFB Agro Industries, Globus Spirits, and Gujchem Distillers India were down on the BSE index.

Further, the media reports said that the licence of country-made liquor shops will be renewed on a 2% increase in minimum guaranteed quality (MGQ). Under the new policy, the duty on beer produced at the micro-breweries has been brought down from Rs150 bulk litre to Rs60 bulk litre, the media reports added.

Meanwhile, investors are focusing on Union Budget for FY20-21 which is due on Saturday, February 01, 2020.

Stock view:

Tilaknagar Industries Ltd is currently trading at Rs14.61, up by Rs0.33 or 2.31% from its previous closing of Rs14.28 on the BSE.

Piccadily Agro Industries Ltd is currently trading at Rs9.20, up by Rs0.2 or 2.22% from its previous closing of Rs9 on the BSE.

Radico Khaitan Ltd is currently trading at Rs361.20, down by Rs2.55 or 0.7% from its previous closing of Rs363.75 on the BSE.

United Spirits Ltd is currently trading at Rs587.25, up by Rs10.65 or 1.85% from its previous closing of Rs576.60 on the BSE.

Globus Spirits Ltd is currently trading at Rs133.90, down by Rs1.95 or 1.44% from its previous closing of Rs135.85 on the BSE.

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