United Spirits Ltd (UNITDSPR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Radico Khaitan

Varun Beverages

Globus Spirits

Allied Blenders

United Breweries

Tilaknagar Inds.

United Spirits

G M Breweries

Assoc.Alcohols

Som Distilleries

Sula Vineyards

Why is United Spirits Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 7.44% over the last 5 years

Negative results in Jun 26

INTEREST(Latest six months) At Rs 99.00 cr has Grown at 147.50%
PAT(Q) At Rs 355.27 cr has Fallen at -26.7% (vs previous 4Q average)
NET SALES(Q) At Rs 2,708.00 cr has Fallen at -16.3% (vs previous 4Q average)

With ROE of 21.7, it has a Very Expensive valuation with a 12 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 14.12%, its profits have risen by 16.8% ; the PEG ratio of the company is 3.4

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is United Spirits for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

United Spirits

14.12%

0.60

23.47%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.44%

EBIT Growth (5y)

14.15%

EBIT to Interest (avg)

16.85

Debt to EBITDA (avg)

0.17

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

1.40

Tax Ratio

22.86%

Dividend Payout Ratio

67.06%

Pledged Shares

1.18%

Institutional Holding

30.04%

ROCE (avg)

34.91%

ROE (avg)

19.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

11.97

EV to EBIT

52.13

EV to EBITDA

45.48

EV to Capital Employed

16.76

EV to Sales

8.27

PEG Ratio

3.41

Dividend Yield

1.15%

ROCE (Latest)

35.53%

ROE (Latest)

21.66%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

ROCE(HY)

Highest at 29.21%

DPS(Y)

Highest at Rs 17.00

DPR(Y)

Highest at 67.35%

-20What is not working for the Company

INTEREST(Latest six months)

At Rs 99.00 cr has Grown at 147.50%

PAT(Q)

At Rs 355.27 cr has Fallen at -26.7% (vs previous 4Q average

NET SALES(Q)

At Rs 2,708.00 cr has Fallen at -16.3% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 429.00 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 15.84%

PBT LESS OI(Q)

Lowest at Rs 101.00 cr.

NON-OPERATING INCOME(Q)

is 41.95 % of Profit Before Tax (PBT

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Here's what is working for United Spirits

Dividend per Share (DPS) - Annually

Highest at Rs 17.00

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 67.35%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for United Spirits

Interest - Latest six months

At Rs 99.00 cr has Grown at 147.50%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 101.00 cr has Fallen at -80.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 521.25 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 355.27 cr has Fallen at -26.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 484.85 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 2,708.00 cr has Fallen at -16.3% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 3,234.75 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 2,708.00 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 429.00 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 15.84%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 101.00 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 41.95 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT