Credit Suisse has upgraded United Spirits to outperform from neutral, with a target price of Rs 700. The stock ended up 14% at Rs 656.40 on Tuesday while the BSE Sensex closed 188.26 points down (-0.46%) at 40,966.86.
Company Financials
For the quarter ended 31-12-2019, the company has reported consolidated sales of Rs 2587.60 crore, up 11.81 % from last quarter Sales of Rs 2314.20 Crore and up 2.91 % from last year same quarter sales of Rs 2514.40 crore. The company has reported net profit after tax of Rs 232.80 crore in the latest quarter.
The company’s top management includes Dr.(Mrs.)Indu Shahani, Mr.Anand Kripalu, Mr.D Sivanandhan, Mr.John Thomas Kennedy, Mr.Mahendra Kumar Sharma, Mr.Rajeev Gupta, Mr.Randall David Ingber, Mr.Sanjeev Churiwala, Mr.V K Viswanathan, Mr.Vinod Rao. Company has Price Waterhouse & Co Chartered Accountants LLP as its auditors. As on 30-09-2019, the company has a total of 726,638,715 shares outstanding.
Investment Rationale
United Spirits has de-rated in the past 18 months and now trades at 10-20% discount to tier-2 FMCG stocks, said Credit Suisse. The near-term pressures are fully priced in and risk reward is favourable, it said. Key triggers will be lowering of input costs or price hikes in key states, it said.
Source: Economic Times
