India's United Spirits rises after Citi upgrades to 'buy'

United Spirits

21/03/2025 05:28

** Shares of liquor company United Spirits UNSP.NS climb 3.1% to 1,420.05 rupees

** Citi Research upgrades stock to "buy" rating from "hold"

** Retains 1,650 rupees target price, implying an upside of about 20%

** Says risk-reward has turned favourable for UNSP due to sharp fall in share price so far in 2025, scale-up in Andhra Pradesh, stable growth trends, policy tailwinds in Uttar Pradesh, premiumization shift

** UNSP is likely to see double-digit revenue growth over fiscal years 2024-2027 due to its positioning in organized liquor market, rising disposable incomes - Citi

** Stock down about 15% YTD, underperforming 7% fall in consumer index .NIFTYFMCG - exchange data

** The average rating of 20 analysts tracking UNSP is "buy"; median target price is at 1,634 rupees - data compiled by LSEG

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))