Buy United Spirits, target price Rs 725: Motilal Oswal

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Buy United Spirits, target price Rs 725:  Motilal Oswal


Motilal Oswal has buy call on with a target price of Rs 725. The current market price of United Spirits Ltd. is Rs 574.45.

United Spirits Ltd., incorporated in the year 1999, is a Large Cap company (having a market cap of Rs 41927.05 Crore) operating in Beverages – Alcoholic sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 2673.00 Crore, up 21.72 % from last quarter Sales of Rs 2196.00 Crore and up 3.30 % from last year same quarter Sales of Rs 2587.60 Crore Company reported net profit after tax of Rs 280.80 Crore in latest quarter.

Investment Rationale
Improving growth prospects, premiumization, benign commodity costs, balance sheet improvements, an impressive EBITDA and PAT growth track record, and relatively inexpensive valuations (45.9x FY22 EPS and 34.7x FY23 EPS) v/s peers led to upgrade the stock to Buy earlier this month.


Promoter/FII Holdings
Promoters held 56.8 per cent stake in the company as of Dec 30, 2020, while FIIs held 19 per cent, DIIs 9.8 per cent and public and others 14.5 per cent.





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