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United Spirits Ltd. Stock Analysis

Large Cap
Evaluated by 3587 users | BSE: 532432 | NSE: MCDOWELL-N |
Breweries & Distilleries
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...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

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 majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 8.27%6.48%5.84%-13.86%-11.06%8.49%10.31%12.43%14.12%12.58%
Value Creation Index NANANANA-2.05-0.19-0.020.180.340.20
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7,3769,24410,49910,6159,3358,4958,8188,5919,3419,325
Y-o-Y Gr. Rt.-25.3%13.6%1.1%-12.1%-9%3.8%-2.6%8.7%-0.2%
Adjusted EPS (Rs.) 8.12.391.02-35.99-19.552.334.777.419.218.37
Y-o-Y Gr. Rt.--70.5%-57.3%-3628.4%NANA104.7%55.4%24.3%-9.1%
Book Value per Share (Rs.) 63.2967.4270.5741.739.0822.524.5833.342.5451.31
Adjusted Net Profit 53015766.9-2,615-1,420169346538669608
Net Op. Cash Flow (Rs. Cr.) -1167561,969-552-196283647925948783
Debt to Cash Flow from Ops -57.9510.84.19-15.05-25.4156.413.73.043.03
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
United Spirits Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 2.6%-01.9%-0.2%
Adjusted EPS 0.4%NA20.6%-9.1%
Book Value per Share -2.341.427.820.6
Share Price 14.5% -3.7% 1.2% -23.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 13.333.541.42-66.89-76.9414.7520.2525.624.2917.84
Operating Profit Margin (%) 15.5112.112.65-1.256.1311.5611.3814.0514.9216.27
Net Profit Margin (%) 7.171.690.6-24.63-15.212.053.856.4876.15
Debt to Equity 1.621.851.792.747.562.592.321.410.930.64
Working Capital Days 1271251241211078387919096
Cash Conversion Cycle 1512111727137-6-14-9
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 56.76%
Institutions 29.09%
Non-Institutions 14.16%
Pledged *3.133.383.383.383.223.222.422.421.191.19
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of United Spirits and arrived at the following conclusion:

Past 10 year's financial track record indicates that United Spirits is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of United Spirits's performance infers:

United Spirits earnings have grown by 0%, whereas share price has depreciated -3.7% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of United Spirits share prices over the last 10 years. Here is what we found out:

United Spirits share price has depreciated 4.8% annually over the past ten years.

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

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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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