Goldman Sachs kicks off coverage on United Spirits with 'buy' call, sees 14% upside

Over the past year, United Spirits shares have gained around 13 percent.

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26 Aug, 2025 12:21

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United Spirits shares traded with positivity, rising over two percent, after foreign brokering firm Goldman Sachs kicked off coverage with a bullish outlook on India's spirit market.

According to the brokerage, India's spirit markets is seeing an overarching trend of premiumisation, of which, United Spirits is well-positioned to capture.

Goldman Sachs initiated coverage with a buy call and a target price of Rs 1,650 apiece, which leads to an upside of about 14 percent from the previous session's close.

At 12.10, United Spirits shares were trading at Rs 1,481.65 per share, higher by 2.28 percent on the NSE.

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The India-UK trade deal could potentially lower Scotch import tariffs, which could further boost the category growth, added Goldman Sachs.

The near-term consumption slowdown in India is also impacting United Spirits, but AP (Andhra Pradesh) growth is likely to offset the impact, as per the brokerage.

However, last month, Macquarie maintained its 'underperform' recommendation on the counter citing stiff competition may likely hamper growth prospects.

The international brokerage suggests that Pernod India, a key competitor, has indicated that it is outpacing the industry, reporting 2 percent sales growth in the September 2024 quarter. Pernod expects this sales momentum to fully reverse in the quarter ending December 2024, with strong growth anticipated for the fiscal year ending June 2025.

Over the past year, United Spirits shares have gained around 13 percent, underperforming the benchmark Nifty 50 index that has risen around 25 percent during the same time period.

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