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Distelleries are good bets against recession!!

Drinking has become a regular habit among Indians and socially more acceptable these days. Recently I read in one of the newspapers that in the month of December alone, the sales of liqour through TN Government retail outfit, TASMAC was a whopping Rs220 crores!! Out of which, more than 60 crores worth of liqour was bought by consumers(!) during the last week of December.

Considering the above fact, distellery stocks look attractive if there is recession or not. Already distellery stocks has caught the attention of investors and have appreciated well in the last few months. Added on to that is the Government's drive to to go for Ethanol-mixed petrol in a big way and power production by many of the distelleries is adding more stability to the earnings. As an industry, Distelleries and breweries looks interesting.

Few of the stocks worth looking at are:
1. Empee Distelleries - They are one of the authorised vendors for TASMAC in Tamilnadu and also has presence in all the four southern states. Not only a distellery but also has interests in Real Estate. The company owns huge tract of land near Poonamallee on the outskirts of Chennai, which is on the way to the industrial corridor of Sriperumbudur. They have major plans for developing townships and as per one analyst estimate real estate activities would bring in more than Rs200 crores revenue to the company in the next 3-4 years.

2. Pioneer Distelleries - Already a research report has been published by HDFC Securities in the last week of December. They are going on massive capacity expansion (nothing but natural!!) and co-generation of power.

Two other stocks worth investigating is GM Breweries and Balaji Distelleries.

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