India's United Spirits tops Q4 profit view on higher premium liquor demand

United Spirits

24/05/2024 14:18

BENGALURU, May 24 (Reuters) - India's Smirnoff vodka maker United Spirits  UNSP.NS  reported a
bigger-than-expected rise in fourth-quarter profit on Friday, aided by strong demand for its premium alcohol brands.
    The company's profit rose over 88% to 3.84 billion rupees (around $46 million) in the March quarter, beating
analysts' expected profit of 2.48 billion rupees, according to LSEG data.
    Revenue from operations grew nearly 11% to 63.94 billion rupees.
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    KEY CONTEXT
    
    India's alcohol and beverage makers have benefited from more consumers buying premium liquor brands, bumping up
the revenue for such companies.
    United Spirits' biggest segment, "Prestige and Above," reported growth of 6.6% to 23.1 billion rupees during the
quarter, with steady demand for its Black Dog and Johnnie Walker brands.
    
    PEER COMPARISON
    
    
                                 Valuation (next 12      Estimates (next 12         Analysts' sentiment          
                                       months)                months)                                        
                        RIC        PE      EV/EBITDA    Revenue      Profit     Mean     # of     Stock to     Div
                                                         growth      growth    rating*  analyst    price      yield
                                                                                           s      target**     (%)
   United Spirits     UNSP.NS     58.09      37.40       13.26       15.73      Hold      13        1.02        -
 United Breweries     UBBW.NS     70.71      44.28       14.97       59.03      Hold      12        0.98       0.40
  Radico Khaitan      RADC.NS     51.90      31.00       18.70       46.37       Buy       5        0.94       0.18
     Tilaknagar       TILK.NS     26.40      19.45       -40.34        -       Strong      1        0.73       0.11
     Industries                                                                  Buy                         
 
    JANUARY TO MARCH STOCK PERFORMANCE
    
    -- All data from LSEG
    -- $1 = 83.1063 Indian rupees

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January-March stock performance_UNSP    https://tmsnrt.rs/4bvG2G2
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 (Reporting by Ashna Teresa Britto in Bengaluru, Additional reporting by Manvi Pant; Editing by Ravi Prakash Kumar)
 ((AshnaTeresa.Britto@thomsonreuters.com;))