Imagine a company which was supplying liquor only to the state of Delhi. What would have happened to its top- and bottom-line after the liquor scam? The answer is obvious: It would take a beating, leaving shareholders high and dry. This is why, when buying stocks of sectors like liquor and breweries – where the business is either regional or is dependent on state government policies – it is better to own a set of stocks that includes both regional and national players. Because one never knows what might happen. Now, the question: Why look at the liquor industry at this point of time? These stocks have fared better despite the recent correction.
