Shares of United Spirits extended their winning streak for the fourth straight session, gaining 3 percent to Rs 1,635 on June 5 after Citi issued a bullish call on the stock. The brokerage set a target price of Rs 1,800, suggesting a potential upside of 10 percent from the day’s high. Over the last four trading sessions, the stock has advanced 7 percent.
In its note, Citi expressed confidence in the company's growth trajectory, projecting a recovery in premiumisation trends over the next two to three quarters. The brokerage also highlighted the India–UK Free Trade Agreement (FTA) as a potential catalyst for driving further growth and premiumisation in the spirits market.
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"The policy landscape appears to be turning favourable. We expect EBITDA margins to be sustained at current levels over the next 2–3 years," Citi said, while also noting some caution around near-term demand.
Adding to the optimism, JPMorgan had also issued a positive outlook on United Spirits recently. The brokerage upgraded the stock to 'Overweight' from 'Neutral' and raised its target price to Rs 1,760, up from Rs 1,415 earlier.
JPMorgan cited the company’s strong earnings performance and noted that its ‘Prestige and above’ portfolio holds promising growth potential. The firm also pointed to regulatory tailwinds in key markets like Andhra Pradesh, Uttar Pradesh, Madhya Pradesh, and Jharkhand, which are helping boost investor sentiment.
For the March quarter of FY25, United Spirits posted a net profit of Rs 421 crore, a 74.7 percent increase from Rs 241 crore a year ago. Revenue from operations rose nearly 2 percent year-on-year to Rs 6,634 crore, while EBITDA grew 38 percent to Rs 460 crore during the same period.
Over the last one month, shares of the company have gained 4 percent, outperforming the 1 percent rise in the Nifty 50 during the same period.
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