Shares of United Spirits recovered from day's low, up 2 percent to Rs 1,325 apiece on August 18 after brokerages were largely positive on the counter despite muted June quarter performance as the management continued to retain growth target for FY26.
Goldman Sachs maintained a “buy” call with a target price of Rs 1,575 per share. It said Q1 results were ahead of estimates on topline, even though volume growth was muted after the Andhra Pradesh impact. The brokerage expects the UK–India Free Trade Agreement (FTA) to bring benefits from Q1FY27, helping both growth and margins. However, it cut FY26–28 earnings estimates by 2–4 percent.
JPMorgan also stayed positive with an “overweight” rating but trimmed its target price to Rs 1,600 per share. It lowered FY26–27 EBITDA estimates by 5–6 percent to factor in the revenue decline from Maharashtra’s tax hike. At the same time, the brokerage said the stock’s sharp underperformance makes it a good entry level for investors, and it remains cautiously optimistic on the growth outlook.
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Macquarie, however, maintained an “underperform” rating with a target price of Rs 1,250 per share. It pointed out that growth targets are being retained despite tax hikes in key states like Maharashtra. The brokerage said clarity on the impact of higher taxes will emerge during the festive season, but the company continues to expect double-digit growth in its prestige portfolio and aims to grow EBITDA faster than sales.
The alcohol manufacturer reported a consolidated net profit of Rs 417 crore in the quarter ended June 30, compared with Rs 485 crore in the year-ago period.
Revenue for the company rose 9.4 percent to Rs 3,021 crore from Rs 2,761 crore in the same quarter last year. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 10 percent to Rs 644 crore from Rs 713 crore a year ago, while EBITDA margin contracted to 21.3 percent from 25.8 percent.
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