United Spirits shares rally 3% after Q4 results. Should you buy, sell or hold?
United Spirits (USL) shares experienced a 3% surge on the BSE. This increase came after the company announced a significant rise in consolidated net profit, which doubled to Rs 241 crore for the March quarter.
Shares of () surged 3% on BSE in Tuesday’s session to the day’s high of Rs 1,196 after the company on Friday reported a two-fold increase in consolidated net profit to Rs 241 crore for the March quarter.USL’s revenue from operations was up 12.41% year-on-year (YoY) to Rs 6,511 crore during the quarter under review from Rs 5,792 crore a year earlier while the total expenses in the March quarter were up 10.9% to Rs 6,279 crore.
Here is how brokerages view USL results:
JP Morgan believes that for USL is in focus. FY25 will be back-ended and aim is for a double digit topline along with a modest margin expansion in the time to come.
JP Morgan has a ‘neutral' rating for USL with a target price of Rs 1,150.
Macquarie stated that Q4 surprised on the backing of gross margin and PAT beat was sharper given higher other income. Consolidated performance benefited from lower-than-expected losses in subsidiaries.
Macquarie has given an 'underperform' rating for the stock with a target price of Rs 910.
United Spirits Q4FY24 revenue growth of 7% with 4% volume growth was slightly underwhelming as consumer demand conditions remain subdued with consumer rationalizing drinking occasions. That said, the premiumisation trend continues across categories and brands. Continued focus on innovation and renovation across brands with new launches in growing segments is likely to help capture premiumisation trend
while it plans to hold volumes in popular segments.
ICICI Securities gave an 'add' rating for USL with a price target of Rs 1,220.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Source: Stocks-Markets-Economic Times
