UNITDSPR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | UNITDSPR | Market Cap | 96,418 Cr. | Current Price | 1,326 ₹ | High / Low | 1,645 ₹ |
| Stock P/E | 55.2 | Book Value | 111 ₹ | Dividend Yield | 0.91 % | ROCE | 26.3 % |
| ROE | 20.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,330 ₹ | DMA 200 | 1,366 ₹ |
| Chg in FII Hold | 0.28 % | Chg in DII Hold | 0.00 % | PAT Qtr | 536 Cr. | PAT Prev Qtr | 494 Cr. |
| RSI | 50.1 | MACD | 16.8 | Volume | 10,91,504 | Avg Vol 1Wk | 8,29,631 |
| Low price | 1,210 ₹ | High price | 1,645 ₹ | PEG Ratio | 3.62 | Debt to equity | 0.05 |
| 52w Index | 26.5 % | Qtr Profit Var | 2.70 % | EPS | 23.5 ₹ | Industry PE | 40.4 |
📊 Financials: Strong return metrics with ROCE at 26.3% and ROE at 20%. Debt-to-equity ratio is very low (0.05), reflecting a healthy balance sheet. EPS of ₹23.5 supports profitability, while quarterly PAT growth of 2.7% shows stability but limited acceleration.
💹 Valuation: Current P/E of 55.2 is well above the industry average of 40.4, suggesting premium valuation. PEG ratio of 3.62 indicates expensive growth relative to earnings. P/B ratio (~11.9) is stretched. Dividend yield of 0.91% is modest.
🏢 Business Model & Advantage: UNITDSPR operates in the consumer staples (spirits/beverages) sector, benefiting from strong brand equity, premium positioning, and resilient demand. Distribution strength and product moat provide competitive advantage.
📈 Entry Zone: Attractive entry near ₹1,210–₹1,280 (below DMA 200 and closer to support). Current price (₹1,326) is slightly above fair entry, with resistance at ₹1,645.
⏳ Long-Term Holding: Suitable for a 3–5 year horizon if earnings growth sustains and valuations normalize. Partial profit booking advised near resistance zones.
Positive
- High ROCE (26.3%) and ROE (20%)
- Low debt-to-equity (0.05)
- Strong brand and distribution moat
- Consistent profitability with EPS ₹23.5
Limitation
- Premium valuation (P/E 55.2 vs industry 40.4)
- High PEG ratio (3.62)
- Modest dividend yield (0.91%)
- Quarterly profit growth only 2.7%
Company Negative News
- No major recent negatives reported; valuation concerns dominate.
Company Positive News
- Stable quarterly profit growth and slight increase in FII holdings (+0.28%).
Industry
- Consumer staples sector resilient to macroeconomic cycles.
- Industry PE at 40.4, reflecting moderate growth expectations.
Conclusion
UNITDSPR is fundamentally strong with excellent return metrics and low leverage, but valuations remain stretched. Ideal entry is closer to ₹1,210–₹1,280. Long-term investors may hold with selective profit booking near ₹1,645 resistance, while awaiting earnings growth to justify premium multiples.