United Spirits - Aging Profitably; Yes Securities Initiates Coverage With An 'Add' Rating

Consumption buoyant despite stringent sector regulation

Range of liquor brands manufactured by United Spirits Ltd. (Source: Company website)

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Yes Securities Report

We initiate coverage on United Spirits Ltd./Diageo India with Rs 1,320 target price and an Add rating. Our view is underpinned by the following argument:

  1. AlcoBev consumption opportunity is healthy despite the stringent regulations that govern the sector,

  2. Premiumization and category additions to aid double digit growth,

  3. Profitability per case improvement shows an upward trend,

  4. Ebitda/earnings to grow at ~15%/13% compound annual growth rate over FY24-26E on improved ratios.

Click on the attachment to read the full report:

Yes Securities United Spirits Initiating Coverage Note.pdf
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Also Read: Ceat - Strengthening Position In Domestic Replacement; Expanding Into Export Markets: Motilal Oswal

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