Nomura says United Spirits is at the cusp of a developing upcycle; initiates with Buy rating. 3 reasons why
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United Spirits, one of India’s leading alcoholic beverage makers, is at the cusp of a developing upcycle, says international brokerage Nomura after it initiated coverage with a Buy rating on the counter. With a target price of Rs 1,650, the brokerage implies an upside potential of 23.5% from current market levels. The stock has had a rough start to the year, down 7% already in the first month. Here’s why analysts see a turnaround. Premiumisation tailwinds ahead Shifting consumer demographics and preferences towards Prestige & Above (P&A) brands have strengthened United Spirits’ growth profile. Over FY22–25, the company delivered a robust 15% revenue CAGR while lifting the P&A share of its portfolio from 73% to 90% following the rationalisation of lower-end brands. With its portfolio now heavily skewed towards high-growth premium labels, USL is well placed to address gaps in the mid-segment, where its presence remains limited.B...