Check Before You Invest : United Spirits Ltd

Q: Which industry/sub-sector does United Spirits Ltd belong to?

United Spirits Ltd belongs to the FMCG sector, operating specifically within the Breweries & Distilleries segment.

Q: Is United Spirits Ltd a good quality company?

United Spirits Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is United Spirits Ltd undervalued or overvalued?

United Spirits Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 50.37, Historic Median: 66.52. Price to Book, Current: 10.34, Historic Median: 11.82. Price to Sales, Current: 3.33, Historic Median: 3.44. EV to EBITDA, Current: 32.78, Historic Median: 39.75

Q: Is United Spirits Ltd a good buy now?

United Spirits Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of United Spirits Ltd?

United Spirits Ltd revenue growth is 6.6% for FY-2025, which is above its 5-year CAGR of 5.29%, indicating faster growth.

Q: Gross Profit margin of United Spirits Ltd?

United Spirits Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.1% for FY-2025, which is above its 5-year median of 5%, indicating increasing margins.

Q: Operating Profit Margin of United Spirits Ltd?

United Spirits Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.51% for FY-2025, which is above its 5-year median of 16.42% indicating increasing margins.

Q: Net Profit Margin of United Spirits Ltd?

United Spirits Ltd Net Profit Margin is 13.11% for FY-2025, is above its 5-year median of 10.61%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 9.1, Historic Median: 5. Operating Profit Margin (%), Current: 18.51, Historic Median: 16.42. Net Profit Margin (%), Current: 13.11, Historic Median: 10.61

Q: Return on Asset of United Spirits Ltd?

United Spirits Ltd Return on Asset is 12.46%, which is in line with its 5-year historical median of 12.26%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of United Spirits Ltd?

United Spirits Ltd Return on capital employed is 29.17% for FY-2025, which is above its 5-year historical median of 24.48%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : United Spirits Ltd

Snapshot

Q.1 Which industry/sub-sector does United Spirits Ltd belong to?

United Spirits Ltd belongs to the FMCG sector, operating specifically within the Breweries & Distilleries segment.

Q.2 Is United Spirits Ltd a good quality company?

United Spirits Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is United Spirits Ltd undervalued or overvalued?

United Spirits Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	50.37	66.52
Price to Book	10.34	11.82
Price to Sales	3.33	3.44
EV to EBITDA	32.78	39.75

Q.4 Is United Spirits Ltd a good buy now?

United Spirits Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of United Spirits Ltd?

United Spirits Ltd revenue growth is 6.6% for FY-2025, which is above its 5-year CAGR of 5.29%, indicating faster growth.

Q.2 Gross Profit margin of United Spirits Ltd?

United Spirits Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.1% for FY-2025, which is above its 5-year median of 5%, indicating increasing margins.

Q.3 Operating Profit Margin of United Spirits Ltd?

United Spirits Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.51% for FY-2025, which is above its 5-year median of 16.42% indicating increasing margins.

Q.4 Net Profit Margin of United Spirits Ltd?

United Spirits Ltd Net Profit Margin is 13.11% for FY-2025, is above its 5-year median of 10.61%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	9.1	5
Operating Profit Margin (%)	18.51	16.42
Net Profit Margin (%)	13.11	10.61

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of United Spirits Ltd?

United Spirits Ltd Return on Asset is 12.46%, which is in line with its 5-year historical median of 12.26%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of United Spirits Ltd?

United Spirits Ltd Return on capital employed is 29.17% for FY-2025, which is above its 5-year historical median of 24.48%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of United Spirits Ltd?

United Spirits Ltd Return on equity is 20.78% for FY-2025, which is in line with its 5-year historical median of 20.56%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of United Spirits Ltd?

United Spirits Ltd Cash conversion cycle is -12 days, in line with its 5-year historical median of -12 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	2.15	3.03
ROE (%)	20.78	20.56
ROCE (%)	29.17	24.48
Cash Conversion Cycle	-12 days	-12 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of United Spirits Ltd?

United Spirits Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.29, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of United Spirits Ltd?

United Spirits Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of United Spirits Ltd?

Q.1 Promoter shareholding and pledge status of United Spirits Ltd?

Promoters hold 56.67% of the United Spirits Ltd, with 1.18% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does United Spirits Ltd performance compare with that of its Peers?

Q.1 Revenue growth of United Spirits Ltd vs industry peers?

United Spirits Ltd revenue CAGR is 5.29%, compared to the industry median CAGR of 6.49%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	6.6	6.5
Gross Profit Growth (%)	15.8	11.6
Operating Profit Growth (%)	11.6	8.1
Net Profit Growth (%)	12.4	8.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	2.15	3.03
ROE (%)	20.78	13.45
ROCE (%)	29.17	15.4
Cash Conversion Cycle (days)	-11.59	6

Valuation & price assessment

Q.1 Stock return of United Spirits Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 10% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	10%	17.4%	15.7%	-18.8%

Q.2 Valuation ratios of United Spirits Ltd vs historical?

The current P/E ratio of 50.37 is lower than its historical median of 66.52, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	50.37	66.52	35.77
Price to Book	10.34	11.82	2.22
Price to Sales	3.33	3.44	1.61
EV to EBITDA	32.78	39.75	13.44

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Check Before You Invest : United Spirits Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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