The recent order by the apex court, banning liquor at highwasy continues to take a toll of distilleries stocks.
These are dry sessions for liquor stocks. First, the apex court's ruling that banned establishments from selling alchohol along 500 metres of all state and national highways, took a toll of these stocks in recent sessions.
On Monday, the Madhya Pradesh government proposed to close all liquor shops in the state in a phased manner, and shares of distilleries companies plunged sharply. There is no change in status today either, with most of these stocks trading sharply lower on heavy selling.
It is now widely expected that several other states may follow suit and come out with similar proposals in the foreseeable future. Already Bihar and Kerala government had announced that they would enforce prohibition in a phased manner.
After losing between 3% and 8% yesterday, these stocks are finding it tough to get back into the reckoning today.
United Spirits is trading 2% down, United Breweries is down 0.8%, GM Breweries is lower by about 3.7%, Som Distilleries is declining 3.2%, Pioneer Distilleries is down more than 5%, Globus Spirits is losing 3.7%, Tilaknagar Industries is down marginally, Empee Distilleries is down 1.8% and Ravi Kumar Distilleries is losing 1.7%
Pincon Spirits is trading marginally higher at Rs 64. The company says the liquor ban in Madhya Pradesh will not affect its business. Radico Khaitan, the other stock that is bucking the trend, is gaining 2.5%.
