GM Breweries, Sula Surge Up To 14% As Maharashtra Liquor Duty Hike Excludes Beer & Wine

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Posted by AI on 2025-06-11 11:06:52 | Last Updated by AI on 2026-06-26 20:09:28

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Indian liquor and beer maker GM Breweries shares surged 13.76% on Thursday after the Maharashtra government exempted low and medium alcohol beers and wines from a blanket hike in excise duties on liquor. Earlier this week, the state government announced a hike in excise duties on liquor, but beer and wine with alcohol content less than 12% will remain exempt.

Shares of other beer and wine makers including Sula Vineyards, Jagatjit Industries, Radico Khaitan, and United Spirits also surged between 6.5% and 10% on the BSE today.

James Sinclair, an analyst at Reliance Securities, said in a research note, "The beer industry, albeit short-lived, is witnessing the first beer boom in the last 8 years in Maharashtra, driven by cheap liquor prices, reduced illicit liquor problem, and high penetration of local players".

He added that "In the medium term, pricing benefits from tax revisions and potential market share gains from the resurgence of the legal industry will benefit organized players like GM Breweries and Raymond Ltd".

On Wednesday, Raymond Ltd., the textile and branded apparel maker, surged 8% intraday after it was granted a license to produce and sell spirits in Maharashtra.

Sinclair revised his target price on the stock to Rs. 61 from Rs. 52, implying upside of over 18% from its closing price of Rs. 51.15 on Wednesday.

The analyst retained his 'buy' rating on the stock.

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