ICICI Direct has given Buy recommendation for United Spirits recommended buy rating on the stock with a target price of Rs 1050 in its research rep with a target price of Rs. 1050 in its research report issued on Oct 25, 2022
ICICI Direct’s research report on United Spirits
United Spirits (USL) is India’s leading alcoholic beverage company and subsidiary of global leader Diageo plc. It manufactures, sells premium liquor brands such as Johnnie Walker, Black Dog, Black & White, Vat 69, Antiquity, Signature, Royal Challenge, McDowell’s No 1, Smirnoff and Captain Morgan. Prestige and above segment comprises 80% of its volumes • It aims to grow its revenues in double digits and expects its operating margin to remain in mid to high-teen levels in the medium term.
We remain positive on the long term growth prospects of the stock and maintain our BUY recommendation. We value USL at Rs 1050 i.e. 64x P/E on FY24E EPS.