Kotak analysts raised the price target on United Spirits Ltd. (IN) to INR1,170.00 (from INR1,160.00) while maintaining a Add (2) rating.
The analysts comment: "UNSP’s 4Q print was a tad soft but on expected lines. The company met its full-year guidance of DD revenue growth and mid-teen EBITDA margin (16%). Over the past two years, UNSP has made good progress on premiumization, market share in mid/upper prestige aided by innovations/renovations. The company has now stepped up its focus on white spirits with (1) launch of McDowell’s X series (Vodka, Rum and Gin) in the mid/upper prestige segments and (2) launch of Don Jolio (Tequila) and acquisition of minority stake in Pistola (Agave). Given soft demand environment, we cut FY2025-26E EPS by 3-5%. Roll over and revise FV to Rs1,170 (Rs1,160 earlier). We continue to like UNSP’s thrust on premiumization and execution. ADD."