United Spirits Shares Surge Following JPMorgan Upgrade
Stock Performance
June 3 closing price: ₹1,609.60 (BSE)
Gain for the day: around 4%
Increased Target Price: ₹1,415 to ₹1,760
Potential Gain: More than 11.5% over present levels
Brokerage Action
‘Neutral’ to ‘Overweight’ rating upgrade
Analyst Justification: The upgrade shows faith in United Spirits’ potential for expansion, which is supported by solid financial results and advantageous market circumstances.
Financial Highlights Q4 FY25
₹421 crore in net profit, up 75% year over year
Operations revenue was ₹6,634 crore, a 2% YoY increase.
EBITDA: Rs. 460 crore, up 38% year over year
Declared Dividend: ₹8 per share
Growth Drivers
Performance of the Premium Segment: The ‘Prestige and Above’ category had notable increase, which boosted total profitability.
Regulatory Developments: In important states including Andhra Pradesh, Uttar Pradesh, Madhya Pradesh, and Jharkhand, favorable regulatory developments have improved market access and sales potential.
Current Stock Performance for the Year:
2025: About 5% decrease
Up almost 3% in the last five days
Stock Performance & Analyst Upgrade
JPMorgan Upgrade: Citing solid financial results and promising growth prospects, JPMorgan lifted the target price of United Spirits from “Neutral” to “Overweight” and increased the target price to ₹1,760.
IndiaTimes.com/economictimes
Share Price Movement: On the Bombay Stock Exchange (BSE), United Spirits’ shares increased by about 4% to ₹1,609.60 after the upgrade.
Q4 FY25 Financial Highlights
Net Profit: United Spirits’ consolidated profit after tax (PAT) increased by 75% year over year to ₹421 crore from ₹241 crore in the same quarter the previous year.
Revenue from Operations: At ₹6,634 crore, the company’s revenue from operations increased by 2% annually.
EBITDA: EBITDA, or earnings before interest, tax, depreciation, and amortization, increased by 38% to ₹460 crore on an annual basis.
Dividend: ₹8 per share was announced as the final dividend.
Growth Drivers
Premium Segment Performance: Brands like Johnnie Walker are part of the ‘Prestige and Above’ segment, which grew rapidly and made a substantial contribution to profitability.
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Regulatory Developments: Performance was improved when Andhra Pradesh’s sales resumed after a five-year break.
📉 2025 Stock Performance
The stock has lost almost 5% so far this year, according to economictimes.indiatimes.com.
Current Trend: The stock has increased by almost 3% in the last five days.