UNITDSPR - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials Overview

Profitability

ROCE: 26.3% and ROE: 20.0% — excellent, indicating strong capital efficiency and shareholder value creation.

EPS: ₹20.9, though PAT declined from ₹451 Cr. to ₹266 Cr. — a 11% contraction, suggesting short-term margin pressure.

Debt-to-equity: 0.06 — virtually debt-free, a major strength for a consumer business.

Dividend Yield: 0.90% — modest but consistent.

Institutional Sentiment

FII holdings increased slightly (+0.07%), while DII holdings declined (-0.19%) — mixed sentiment.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 61.3 Significantly above industry average (33.0) — priced for premium brand strength.

P/B Ratio ~12.3 Elevated, typical for high-margin consumer brands.

PEG Ratio 4.02 High — valuation stretched relative to earnings growth.

Intrinsic Value ~₹1,250–₹1,300 (est.) Current price of ₹1,327 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: United Spirits Ltd. manufactures and distributes alcoholic beverages across India and 24 international markets.

Strengths

Iconic brand portfolio including McDowell’s No.1, Royal Challenge, Signature, and global Diageo brands like Johnnie Walker, Smirnoff, and Tanqueray

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Strong distribution network and premium positioning.

Diversification into sports via ownership of Royal Challengers Bengaluru IPL and WPL franchises

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Challenges

Recent profit contraction and high valuation multiples.

RSI at 51.5 — neutral, MACD at -1.69 — bearish crossover.

📈 Entry Zone & Technicals

DMA 50: ₹1,342, DMA 200: ₹1,399 — price is below both, indicating short-term weakness.

RSI: 51.5 — neutral zone.

MACD: -1.69 — bearish momentum.

📌 Entry Zone: ₹1,250–₹1,300 — ideal for accumulation on dips.

🕰️ Long-Term Holding Guidance

2025 Target: ₹1,450–₹1,600

2026–2028 Target: ₹1,800–₹2,200

2030 Target: ₹2,500+

Holding Strategy: United Spirits is a premium consumer play with strong brand equity, global partnerships, and low debt. Ideal for long-term investors seeking exposure to discretionary spending and lifestyle consumption. Accumulate during technical weakness and hold through cycles.

You can explore Trendlyne’s full stock report or review TopStockResearch’s business overview for deeper insights.

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