Karnataka Budget 2024: Why brewery stocks will be in focus next week?

livemint.com:

Karnataka Budget 2024: The recent announcement made by the Karnataka government to raise excise duty on alcohol, particularly beer, has put the spotlight on brewery stocks in the upcoming week. According to stock market experts, liquor prices are already high in Karnataka and the current Karnataka Budget 2024 proposal may have an adversary impact on liquor sales in the state in the short term.

Speaking on the Karnataka Budget 2024 proposal, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "The Karnataka government has increased duty on alcohol for the second time in the last one year. In July 2023, the Karnataka government raised excise duty on beer and Indian-made foreign liquor.

So, these Karnataka Budget proposals are going to put the spotlight on the liquor majors like United Breweries, United Spirits, Radico Khaitan, Globus Spirits, etc." Also Read: Gold price dips for second straight week on higher US Fed rate buzz On how this Karnataka Budget 2024 proposal will impact the leading liquor brands in India, Yashovardhan Khemka, Senior Manager — Research at Abans said, "With the current hike, companies manufacturing and distributing beers will be impacted more than those focused on spirit. Notably, this marks the second instance of such a duty hike, following a similar move in July 2023, when excise duty on Indian-made foreign liquor (IMFL) rose by 20 percent and on beer by 10 percent.