United Spirits Ltd Stock Analysis

BSE: 532432 | NSE: MCDOWELL-N | Breweries & Distilleries | Large Cap

BSE Share Price Aug 19, 18:03
791.85 -16.45 (-2.04%)

DeciZen - Make an Informed Decision on United Spirits

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

United Spirits Price Chart

P/E Ratio (CD) :
56.56
Market Cap :
58,734.2 Cr.
52-wk low :
658.5
52-wk high :
1,019.8
Bole Toh?

1. Is United Spirits Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that United Spirits Ltd is a average quality company.

2. Is United Spirits Ltd undervalued or overvalued?

The key valuation ratios of United Spirits Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is United Spirits Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of United Spirits Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of United Spirits:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
United Spirits Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 5.8%-13.9%-11.1%8.2%9.1%12.4%14.1%12.6%9.7%19.2%-
Value Creation Index -0.5-2.2-2.0-0.3-0.20.10.30.1-0.1NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 10,49910,6159,3358,4958,8188,5919,3419,3258,1319,71232,025
YoY Gr. Rt. %-1.1%-12.1%-9%3.8%-2.6%8.7%-0.2%-12.8%19.4%-
Adj EPS 1-36-19.62.13.77.49.28.45.512.514.3
YoY Gr. Rt. %--3628.4%NANA78.1%98.1%24.3%-9.1%-33.8%126.4%-
BVPS (₹) 70.641.79.122.524.633.342.551.356.668.271.8
Adj Net Profit 66.9-2,615-1,4201532725386696084029111,039
Cash Flow from Ops. 1,969-552-1962836479259487831,818977-
Debt/CF from Ops. 4.2-15.1-25.4156.43.7330.50.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -0.9%2%1.3%19.4%
Adj EPS 32.2%27.4%10.8%126.4%
BVPS -0.422.61720.5
Share Price 15.7% 8.7% 10.5% 9.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 1.4-66.9-76.913.315.925.624.317.810.320.120.4
Op. Profit Mgn % 12.7-1.36.111.611.414.114.916.31316.45.6
Net Profit Mgn % 0.6-24.6-15.21.936.576.24.79.23.2
Debt to Equity 1.82.77.62.62.31.40.90.60.20.1-
Working Cap Days 124121107838791908992890
Cash Conv. Cycle 111727137-6-14-9-18-190

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 20.40%

Net Profit is growing at healthy rate in last 3 years 10.84%

Sales growth has been subdued in last 3 years 1.31%

Sales growth is not so good in last 4 quarters at 8.03%

Latest Financials - United Spirits Ltd.

Standalone Consolidated
TTM EPS (₹) 12.5 14.3
TTM Sales (₹ Cr.) 31,551 32,025
BVPS (₹.) 70.4 71.8
Reserves (₹ Cr.) 4,967 5,070
P/BV 11.49 11.27
PE 64.47 56.56
From the Market
52 Week Low / High (₹) 658.45 / 1019.75
All Time Low / High (₹) 5.65 / 1019.75
Market Cap (₹ Cr.) 58,734
Equity (₹ Cr.) 145.3
Face Value (₹) 2
Industry PE 60.5

Management X-Ray of United Spirits :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *1.191.191.191.191.191.191.191.191.191.19
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of United Spirits

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About United Spirits Ltd

United Spirits (USL), is the largest spirits company in India and a flagship entity of UB group. It manufactures wide range of whisky, vodka, rum and other spirits. United Spirits is among the top three spirits companies in the world. USL has a global footprint with exports to over 37 countries. It has a sizeable presence in India with distilleries and sales offices all across the country, and a committed team of over 7500 people dedicated to the fulfillment of the company's mission. It has established manufacturing and bottling plants in every state of India. In addition, to deliver its products to customers located anywhere in India, USL has established a robust distribution network covering the whole country.

United Spirits represents the merged entities of the erstwhile McDowell & Co. Limited, Phipson Distillery Limited, United Spirits Limited, Herbertsons Limited, Triumph Distillers and Vintners Private Limited, Baramati Grape Industries Limited, United Distillers India Limited, McDowell International Brands Limited, Shaw Wallace Distilleries Limited and Shaw Wallace & Company Limited. The erstwhile McDowell & Co. Limited was first established as a proprietary business in 1826.

United Spirits acquired Andhra Pradesh (AP)–based, Tern Distilleries, in 2009, in a bid to augment its primary distillation capacity. This is the company's third manufacturing unit in the region given that one fifth of USL's sales volumes come from AP.

USL acquired Balaji Distilleries Limited in December 2010. This acquisition gave the company the strategic advantage to consolidate the Group's leadership position in a critical, large and growing State like Tamil Nadu.

USL's technical centre is located in Bangalore, which develops new products, conducts research and development, flavour testing and quality management. It has 62 manufacturing units.

The company has received recognition for its quality products from independent jury such as International Wine & Spirits Competition (UK), International Spirits Challenge (UK), World Beverage Competition (US), Monde Quality Institute (Belgium) and Mundusvini (Germany).

Its brands include Black Dog 12 YO Deluxe Scotch Whisky, Black Dog Centenary Scotch Whisky, Antiquity Blue Whisky, Antiquity Rare Whisky, Signature Whisky, Single Malt Whisky, DSP Black Whisky, Celebration Rum, McDowell's No.1 Brandy, White Mischief Vodka, Premium Romanov and Blue Riband Gin.

United Spirits acquired leading distiller of Scotch whisky Whyte & Mackay and  Bouvet Ladubay, a wine subsidiary of French champagne company Taittinger. Whyte & Mackay and Bouvet Ladubay are now 100% subsidiaries making United Spirits a manufacturer of 17 millionaire brands.

Awards and Recognition

  • United Spirits' brand Gilbey’s Green label is winner of World Star ’96 award for packaging innovation. It has also received 2 star rating for superior taste from International Taste and Quality Institute (ITOI).
  • Its brand Antiquity has been a winner of World Star, Asia Star and India Star awards.
  • White mischief is a market leader with 45% of share in the vodka segment.
  • Mc Dowell’s Whisky is the world 3rd fastest growing spirit brand.
  • Mc Dowell’s Single Malt was awarded at International Wine and Spirits Competition.
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