ScoreWhy is United Spirits Ltd ?
1
High Management Efficiency with a high ROE of 19.45%
2
Company has a Debt to Equity ratio (avg) of 0.01 times
3
Poor long term growth as Net Sales has grown by an annual rate of 7.44% over the last 5 years
4
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)
5
With ROE of 21.7, it has a Very Expensive valuation with a 12.3 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 15.25%, its profits have risen by 16.8% ; the PEG ratio of the company is 3.5
6
High Institutional Holdings at 30.04%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Market Beating performance in long term as well as near term
- Along with generating 15.25% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to United Spirits should be less than 10%
- Overall Portfolio exposure to Beverages should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is United Spirits for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
United Spirits
15.18%
0.64
23.70%
Sensex
-2.39%
-0.18
13.58%
Quality
Management Risk
Growth
Capital StructureQuality 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%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
59
Industry P/E
54
Price to Book Value
12.32
EV to EBIT
53.72
EV to EBITDA
46.87
EV to Capital Employed
17.27
EV to Sales
8.52
PEG Ratio
3.51
Dividend Yield
1.65%
ROCE (Latest)
35.53%
ROE (Latest)
21.66%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What 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
Loading Valuation Snapshot...
Here's what is working for United Spirits
Dividend per Share (DPS) - Annually
Highest at Rs 17.00
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (Rs)
Dividend Payout Ratio (DPR) - Annually
Highest at 67.35%
in the last five yearsMOJO 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 periodMOJO 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 CrMOJO 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 CrMOJO 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 CrMOJO 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 quartersMOJO 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 quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 15.84%
in the last five quartersMOJO 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 quartersMOJO 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
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