New Delhi, Jan. 23 -- A clear divergence has emerged in India's listed liquor space. While United Spirits has slipped about 8.2% over the past year, Radico Khaitan has surged 35%. And the gap between these two leading alcoholic beverage companies may widen further.

Street expectations continue to favour Radico, with analysts pencilling in further outperformance. However, United Spirits remains a stock to watch, with shifting consumer demographics and a clear tilt towards Prestige & Above (P&A) brands setting the stage for a potential upside for the stock.

The Indian alco-beverage market is divided into four segments by price: popular, prestige, premium, and luxury.

Popular brands are priced up to Rs.400 per 750 ml. The prestige segment...