ScoreWhy is United Spirits Ltd ?
1
Flat results in Mar 26
- INTEREST(Latest six months) At Rs 88.00 cr has Grown at 25.71%
- OPERATING PROFIT TO INTEREST (Q) Lowest at 8.59 times
- PBT LESS OI(Q) At Rs 477.00 cr has Fallen at -7.5% (vs previous 4Q average)
2
With ROE of 21.7, it has a Very Expensive valuation with a 10.4 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 -18.61%, its profits have risen by 17.1% ; the PEG ratio of the company is 2.8
3
Underperformed the market in the last 1 year
- Even though the market (BSE500) generated negative returns of -0.08% in the last 1 year, its fall in the stock was much higher with a return of -18.61%
Real-Time Research ReportHow 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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
United Spirits
-18.41%
-0.77
23.68%
Sensex
-6.68%
-0.51
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.74%
EBIT Growth (5y)
24.05%
EBIT to Interest (avg)
17.01
Debt to EBITDA (avg)
0.17
Net Debt to Equity (avg)
-0.30
Sales to Capital Employed (avg)
1.40
Tax Ratio
23.45%
Dividend Payout Ratio
54.99%
Pledged Shares
1.18%
Institutional Holding
29.79%
ROCE (avg)
34.91%
ROE (avg)
19.45%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
48
Industry P/E
55
Price to Book Value
10.41
EV to EBIT
40.88
EV to EBITDA
36.04
EV to Capital Employed
14.52
EV to Sales
6.99
PEG Ratio
2.81
Dividend Yield
1.09%
ROCE (Latest)
35.53%
ROE (Latest)
21.66%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
PAT(Latest six months)
At Rs 1,025.89 cr has Grown at 23.59%
ROCE(HY)
Highest at 29.21%
EPS(Q)
Highest at Rs 7.43
-9What is not working for the Company
INTEREST(Latest six months)
At Rs 88.00 cr has Grown at 25.71%
OPERATING PROFIT TO INTEREST (Q)
Lowest at 8.59 times
PBT LESS OI(Q)
At Rs 477.00 cr has Fallen at -7.5% (vs previous 4Q average
NON-OPERATING INCOME(Q)
is 38.21 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for United Spirits
Profit After Tax (PAT) - Quarterly
Highest at Rs 594.75 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 594.75 cr has Grown at 32.6% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 448.60 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 7.43
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for United Spirits
Interest - Quarterly
At Rs 69.00 cr has Grown at 263.16%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 8.59 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 69.00 cr
in the last five quarters and Increased by 263.16 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 477.00 cr has Fallen at -7.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 515.50 CrMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 38.21 % 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
Non Operating Income - Quarterly
Highest at Rs 295.00 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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