Why United Spirits Shares Could Be the Hottest Stock in India Right Now!
United Spirits shares jumped 2.18% to Rs 1,583 following a major upgrade by a leading foreign brokerage. The brokerage upgraded the stock rating from ‘Neutral’ to ‘Overweight’ and raised the target price significantly, from Rs 1,415 to Rs 1,760, boosting investor confidence in United Spirits shares.
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This upgrade reflects growing faith in the company’s earnings prospects, driven by better margin visibility and favorable regulatory developments. The brokerage revised its EBITDA estimates upward by 3% for FY26 and 7% for FY27, primarily fueled by strong growth expected in United Spirits’ Prestige & Above portfolio. These factors have pushed the shares of United Spirits into the spotlight among investors.
Several supportive regulatory tailwinds were noted, including the reopening of the Andhra Pradesh market, retail outlet expansion in Uttar Pradesh, excise reforms in Madhya Pradesh, and privatization of liquor sales in Jharkhand. These developments are expected to enhance distribution channels and sales volumes, positively impacting United Spirits shares going forward.
Financially, United Spirits posted robust Q4 FY25 results, with standalone net profit rising 17.44% to Rs 451 crore compared to the previous year. Revenue from operations (excluding excise duty) increased by 10.50% year-on-year to Rs 2,946 crore, driven by a resilient portfolio and a favorable base effect after business resumed in Andhra Pradesh following a five-year break. This strong financial performance has further boosted investor sentiment in United Spirits shares.
The Prestige & Above segment accounted for 87.7% of net underlying sales in the quarter, reaffirming United Spirits’ dominance in the premium alcohol category and helping propel United Spirits shares higher in recent trading sessions.
With improved earnings visibility, regulatory tailwinds, and strong quarterly results, United Spirits shares appear well-positioned for further growth in the coming months.
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