HBJ Report Factory Price - Rs 2000/-
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We have many a times written about what Street Smart is all about and how it differs from 10in3. Look at our recent Street Smart that we came out with a month back. The stock was so small and it was having a market cap of just 100 + Crore when we recommended it. And in the last one month alone, it has given returns of 30% and you know what happened to broader markets in the month of May.
So, that is what Street Smart is all about. Providing stability to your portfolio coupled with excellent returns of 4 to 5 times in a 3 year period.
And, speaking about the Street Smart for this month and the Alcoholic Beverage industry, we believe that this will be one of the largest beneficiary of whatever Demographic advantage people are speaking about and the increased spending capacity. Indian Liquor industry is estimated at Rs.34,000 Crore and has been growing at 12-15% p.a. It is expected to maintain its growth at CAGR of 15%, going forward.
The low per capita consumption of liquor in India, changing consumer perceptions of alcohol, high volumes generated by the unorganized cheap segment, with its likely transition into the organized sector and progressive regulatory changes are the key drivers to the growth of this industry.
Indian demographics are favorable to consumption of alcohol. Alcohol consumption begins at age 16-18 in India and peaks at 30-35. The 18-35 age group in India is 247mn strong and growing at 3.4% p.a. With net addition of 40mn to this segment over next 5 years, alcohol demand will aggregate 40mn cases over FY05-10. Of this, IMFL will account for 45-50%, owing to the higher aspiration levels of the new generation. With growing income of young consumers and increasing consumption of lifestyle products, demand for alcohol is set to rise.
Potable alcohol segment has been growing at rate of 10 % over the last few years and is expected to rise at a CAGR of 13% over the next 5 years. IMFL industry in India is estimated at over 160 million cases and is growing steadily. IMFL accounts for only a third of the total liquor consumption in India.
Consumption is largely skewed towards whisky, which accounts for more than half of the market. Country Liquor market is a regional market and there exist a large number of small manufacturers spread across various States. Major IMFL manufacturers, however, have a countrywide presence.
$Multibagger Team
