UNITED SPIR­ITS LTD.

Flash News Investment - - RECOMMENDATIONS -

{Ticker : 532432 { BUY: ₹635.10 { Tar­get: ₹708

United Spir­its Ltd is the largest bev­er­age al­co­hol com­pany in In­dia en­gaged in the man­u­fac­ture, sale and dis­tri­bu­tion of bev­er­age al­co­hol. It has brand port­fo­lio with over 100 brands of scotch whisky, IMFL whisky, brandy, rum, vodka, gin and wine. In Q2FY19, the com­pany’s rev­enue was up by 14.2 per cent YoY, led by ro­bust growth in pop­u­lar and pres­tige & above (P&A) seg­ments. Its EBITDA grew by 36.1 per cent YoY and EBITDA mar­gin im­proved by 313 bps to 19.4 per cent. The PAT for the quar­ter jumped by 39 per cent YoY to Rs 258.7 crore from Rs 153.1 crore. The man­age­ment has guided dou­ble digit growth in rev­enue in FY19, led by dou­ble digit growth in P&A seg­ment. The higher de­mand for pre­mium and pop­u­lar brands with hiked prices across In­dia will lead to higher rev­enue and mar­gins. Thus, we rec­om­mend it as a BUY.

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