United Spirits shares jump 4% after JP Morgan upgrades to ‘Overweight'; target raised to Rs 1,760
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Shares of United Spirits rose nearly 4% to Rs 1,609.60 on the BSE in Tuesday's trade after global brokerage JP Morgan upgraded the stock to 'Overweight' from 'Neutral' and raised its target price to Rs 1,760 from Rs 1,415.The upgrade is driven by JP Morgan's growing confidence in United Spirits' earnings growth trajectory , backed by improved margin visibility and regulatory tailwinds. The brokerage has revised its EBITDA estimates upward by 3% for FY26 and 7% for FY27, citing a better growth outlook in the company's Prestige & Above portfolio.JP Morgan highlighted several favourable regulatory developments that could support United Spirits' performance. These include the reopening of the Andhra Pradesh market, expansion of retail outlets in Uttar Pradesh, excise reforms in Madhya Pradesh aimed at boosting premium product salience, and the ongoing privatization of retail liquor sales in Jharkhand.Despite the stock declining 7% year-to-date while the Nifty has gained 4%, the brokerage believes upward revisions in earnings per share (EPS) and improved visibility on growth could help the stock outperform in the coming quarters.United Spirits reported a 75% year-on-year rise in net profit to Rs 421 crore for the fourth quarter of FY25, up from Rs 241 crore in the same period last year. Revenue from operations rose 2% to Rs 6,634 crore, compared to Rs 6,511 crore a year ago. On a sequential basis, net profit increased 26% from Rs 335 crore in Q3FY25, though revenue fell 14% from Rs 7,732 crore.EBITDA for Q4FY25 stood at Rs 460 crore, up 38% year-on-year. For the full year, EBITDA rose 12% to Rs 2,243 crore.The company's net sales value (NSV) for Q4FY25 rose 9% year-on-year to Rs 3,031 crore, while full-year NSV increased 7% to Rs 12,069 crore. Underlying NSV for the quarter grew 10% to Rs 3,068 crore, and for FY25, it was up 7% at Rs 12,106 crore.Headquartered in Bengaluru, United Spirits (also known as Diageo India) operates one of the largest alcohol manufacturing footprints in India with 35 facilities. Its portfolio includes well-known brands such as Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Smirnoff, and Signature.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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