Buy United Spirits, target price Rs 860: Religare Broking

Religare Broking has buy call on United Spirits Ltd. with a target price of Rs 860. The current market price of United Spirits is Rs 809.35. Religare Broking recommended to keep stop loss at Rs 780.

United Spirits, incorporated in the year 1999, is a Large Cap company (having a market cap of Rs 58751.77 Crore) operating in Beverages - Alcoholic sector.

United Spirits key Products/Revenue Segments include Beverages (Alcohol), Income From Franchise, Scrap and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 2800.00 Crore, down -4.06 % from last quarter Total Income of Rs 2918.60 Crore and down -5.00 % from last year same quarter Total Income of Rs 2947.50 Crore. Company has reported net profit after tax of Rs 214.40 Crore in latest quarter.

The company’s top management includes Mr.Mahendra Kumar Sharma, Ms.Hina Nagarajan, Dr.(Mrs.)Indu Shahani, Mr.D Sivanandhan, Mr.Rajeev Gupta, Mr.V K Viswanathan, Mr.John Thomas Kennedy, Mr.Mark Dominic Sandys, Mr.Randall David Ingber. Company has Price Waterhouse & Co Chartered Accountants LLP as its auditors. As on 31-03-2023, the company has a total of 73 Crore shares outstanding.

Investment Rationale
Formed a base after consolidating within 730-790 zone. Expect a steady rebound from hereon.

Promoter/FII Holdings
Promoters held 56.68 per cent stake in the company as of 31-Mar-2023, while FIIs owned 15.38 per cent, DIIs 12.54 per cent.