United Spirits Q4 Results Review - Plethora Of Triggers, Upbeat Outlook: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.United Spirits Ltd.’s Q4 FY24 result was moderately healthy, in-line with street and ahead of our estimates driven by better gross margin and lower opex. On L2L basis, Q4 FY24 revenue/gross profit/Ebitda/adjusted profit after tax was at +7/9/35/50% YoY and FY24 at a healthy 10.5/15.5/34.5/51.4% YoY, despite second consecutive year of raw material pressure. United Spirits had a strong recovery plus comeback post FY23 and especially FY24. Management remains confident of low double-digit revenue growth coupled with both gross and Ebitda margin expansion. Execution and delivery have also been on track. Further potential triggers such as-peak raw material inflation behind,supply-chain agility program benefits,new product launches especially in white spirts (McDowell’s X series), healthy balance sheet,roll-forward to FY27,likely India-UK FTA andpositive RTM changes in Andhar Pradesh/Bihar/Delhi (if any) in the medium term - shall keep the momentum buoyant. .We tweak our FY25-26E EPS estimates by -2.5/+1.3%. Reiterate ‘Accumulate’ rating with target price of Rs 1,240 viz. Rs 1,140 @ 50 times FY26E standalone EPS + Rs 100 for IPL and treasury shares (versus Rs 1,225 @ 50 times FY26E EPS). Roll-forward to FY27 would increase our target price to Rs 1,445. Slow-down in P&A growth is a key risk..Click on the attachment to read the full report:.Canara Bank - Earnings Growth To Sustain At 15-18%: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

United Spirits Q4 Results Review - Plethora Of Triggers, Upbeat Outlook: Dolat Capital

Tailwinds shall propel earnings growth; headwinds to watch-out, but unlikely in near-term

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP