Latest news with #&Above
Mint
3 hours ago
- Business
- Mint
United Spirits denies stake sale report by parent Diageo in IPL franchise RCB. Here's what the company said
Shares of United Spirits climbed over 3 percent on June 10 to touch a five-month high, following a media report that suggested its parent company Diageo was considering selling its stake in IPL franchise Royal Challengers Bengaluru (RCB). However, United Spirits swiftly issued a clarification, categorically denying any such development. In a regulatory filing with the BSE, United Spirits said the media reports were speculative in nature and there were no ongoing discussions regarding the stake sale. 'This has reference to your email communication dated 10th June 2025 seeking clarification from the Company on media reports in relation to potential stake sale of RCB. The Company would like to clarify that aforesaid media reports are speculative in nature and it is not pursuing any such discussions,' United Spirits stated. The clarification came after a report indicated that Diageo was in talks with advisors to explore a potential sale of part or all of the RCB franchise, seeking a valuation of up to ₹ 17,000 crore. The report also mentioned that no final decision had been made and Diageo might ultimately decide not to proceed with the sale. RCB, one of the most popular franchises in the IPL, was originally acquired by Vijay Mallya. After Kingfisher Airlines shut operations in 2012, Diageo took control of the team following its acquisition of Mallya's spirits business. In a historic moment this season, RCB clinched their first-ever IPL title, defeating Punjab Kings in a closely contested final by six runs. Despite the off-field buzz, United Spirits shares benefited from positive investor sentiment, aided in part by the company's strong financial performance in the March quarter. United Spirits posted a 74.7 percent year-on-year surge in net profit for Q4FY25, reaching ₹ 421 crore, up from ₹ 241 crore in the year-ago period. Revenue rose 8.9 percent to ₹ 3,031 crore, while EBITDA increased 37.7 percent to ₹ 460 crore. Operating margins improved significantly to 15.2 percent from 12 percent a year ago. The board recommended a final dividend of ₹ 8 per equity share for FY25, subject to shareholder approval. CEO & Managing Director Praveen Someshwar said, 'Despite a challenging demand environment, we delivered 13.2% net sales value (NSV) growth for the Prestige & Above (P&A) segment in Q4FY25 and 9.9% growth for FY25.' HSBC MF highlighted that resumed sales in Andhra Pradesh after a five-year hiatus contributed meaningfully to the company's top line. The premium alcohol segment continued to drive volume and profitability growth. Recently, JPMorgan upgraded United Spirits to 'Overweight' from 'Neutral', raising its target price to ₹ 1,760 from ₹ 1,415. The brokerage cited strong earnings momentum and highlighted the growth potential of the Prestige and Above portfolio. JPMorgan also pointed to favorable regulatory trends in states such as Andhra Pradesh, Uttar Pradesh, Madhya Pradesh, and Jharkhand, which are enhancing investor sentiment. United Spirits' stock hit an intraday high of ₹ 1,644 on June 10, inching closer to its 52-week high of ₹ 1,700 recorded in January 2025. The stock has rebounded strongly, gaining nearly 33 percent from its 52-week low of ₹ 1,236, seen in June 2024. In terms of monthly performance, the scrip has advanced 5.5 percent in June so far, following a 3 percent decline in May. It had gained 11.6 percent in April and 9 percent in March, after falling 12.4 percent in January and 10 percent in February. Over the past year, the stock has returned 22 percent to investors.
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Business Standard
4 hours ago
- Business
- Business Standard
Smallcap spirits stock zooms 50% from May low, hits record high; here's why
Allied Blenders and Distillers (ABD) share price today Shares of Allied Blenders and Distillers (ABD) hit an all-time high of ₹454.10, soaring 6 per cent on the BSE in Tuesday's intra-day trade on the back of over two-fold jump in trading volumes. In comparison, the BSE Sensex was down 0.07 per cent at 82.389 at 02:45 PM. The stock price of this smallcap spirits company surpassed its previous high of ₹444.95, hit on January 3, 2025. It has zoomed 50 per cent from its previous month low of ₹302.50 touched on May 2, 2025. Allied Blenders Q4FY25 performance ABD's consolidated net revenue grew 20 per cent year-on-year (YoY) to ₹920.6 crore in March 2025 quarter (Q4FY25), driven by 20.8 per cent volume growth to 8.5 million cases. Prestige & Above (P&A) sales volume grew by 32 per cent YoY to 3.6 million cases and mass premium sales volume grew by 13 per cent YoY to 4.9 million cases. The company reported its highest-ever quarterly profit after tax (PAT) at ₹79 crore in Q4FY25, against a loss of ₹2.4 crore. The company also reported its highest-ever earnings before interest, taxes, depreciation and amortisation (EBITDA) at ₹150 crore, up 141.5 per cent YoY from ₹62 crore in Q4FY24. Gross margins improved by 436 bps YoY to 43.4 per cent (improved by 61 bps QoQ) due to improved product mix, softening of input prices and supply efficiencies. This along with cost saving initiatives led to 698 bps YoY improvement in the EBIDTA margins to 14.8 per cent (277bps improvement QoQ) ahead of analyst's expectation of around 12 per cent. The strong performance in EBITDA was driven by continued strong focus on profitable state brand mix and cost optimization initiatives. The robust performance in PAT was led by strong EBITDA growth and interest cost savings, the management said. Management expects EBIDTA margins to touch 15 per cent by FY28 driven by investment in backward integration (likely expansion of 300 bps in EBIDTA margins), improved mix to premium products and stable input prices. India-UK FTA Agreement The India-UK Free Trade Agreement is a truly significant milestone for the Indian spirits industry, opening up exciting new avenues for collaboration and growth for the sector as a whole and whisky category in particular. ABD is one of the largest importers of bulk scotch in India to benefit as lower import duty is expected to be largely margin accretive. In addition, this agreement will also benefit ABD's Super-Premium to Luxury portfolio by making these products more accessible. The management anticipates this will offer Indian consumers greater choice and an opportunity to enjoy a wider range of high-quality spirits. ICICI Securities view on Allied Blenders and Distillers Analysts at ICICI Securities expect EBIDTA margins of 13.5 per cent by FY27E. However, any benefits coming in from signing of FTA with UK will incrementally add-on to the margins in the coming years. ABD is focusing on expanding its premium portfolio, driving efficiencies through backward integration and increasing footprints in the domestic & international market. This will aid the company in its transformation journey of delivering consistent growth in the near to medium term. The brokerage firm has recommended a 'Buy' rating on ABD with a price target of ₹ 495, valuing stock at 43x its FY27E EPS of ₹ 11.6. About Allied Blenders and Distillers Allied Blenders and Distillers Limited (ABD) is the largest domestic spirits company in India, in terms of annual sales volumes. ABD has a presence in five main flavors, i.e., whisky, brandy, rum, vodka, and gin, with 'millionaire' brands like Officer's Choice Whisky, Officer's Choice Blue Whisky, Sterling Reserve Premium Whiskies and ICONiQ White Whisky. Currently, its manufacturing network comprises 36 units, of which 9 are owned bottling units, 2 owned distilleries, and 25 non-owned manufacturing units.
Business Standard
03-06-2025
- Business
- Business Standard
United Spirits rises as foreign broker turns bullish, hikes target to Rs 1,760
United Spirits jumped 2.18% to Rs 1,583 after a leading foreign brokerage upgraded the stock to 'Overweight' from 'Neutral' and raised the target price to Rs 1,760 from Rs 1,415. The upgrade reflects improved confidence in the companys earnings trajectory, supported by better margin visibility and regulatory tailwinds. The brokerage also revised its EBITDA estimates higher by 3% for FY26 and 7% for FY27, driven by a stronger growth outlook in United Spirits Prestige & Above portfolio. It highlighted several supportive regulatory moves, including the reopening of Andhra Pradesh, retail outlet expansion in Uttar Pradesh, excise reforms in Madhya Pradesh, and the privatization of liquor sales in Jharkhand. United Spirits is one of the leading beverage alcohol companies in India. Its standalone net profit jumped 17.44% to Rs 451 crore in Q4 FY25 as against Rs 384 crore in Q4 FY24. Revenue from operations (excluding excise duty) stood at Rs 2,946 crore in Q4 FY25, up 10.50% YoY, driven by continued resilience of its portfolio in a challenging consumer environment as well as due to a favourable base as business commenced in the state of Andhra Pradesh in Sep-24 after a gap of 5 years. The Prestige & Above segment accounted for 87.7% of net underlying sales during the fourth quarter of fiscal 2025.
Economic Times
27-05-2025
- Business
- Economic Times
Hot Stocks: 4 stocks that may give returns between 15-57%
Analysts predict significant growth for select stocks, with potential returns ranging from 15% to 57%. Aurum Proptech is expected to benefit from the expanding proptech sector, while Radico Khaitan aims to increase its premium whisky market share. GMR Airports anticipates EBITDA growth, and GE Vernova T&D India foresees strong demand and earnings growth. Tired of too many ads? Remove Ads Expect to see revenue growth of over 2 times in the next 3 years, while also turning profitable. India's proptech sector is projected to grow from $6 billion in CY23 to $100 billion by CY30. Current share valuation does not factor in upside from the SM-REIT (Small and Medium Real Estate Investment Trusts) business (once the licence is secured). Tired of too many ads? Remove Ads Expected to deliver 30% EPS (Earnings Per Share) growth on a compounded basis over FY25–28. Holds a dominant 85% share in the P&A (Prestige & Above) vodka segment, and is scaling up its premium whisky portfolio, where it currently holds only a 3% share. Valuation remains rich, but is supported by structural growth. EBITDA (earnings before interest, taxes, depreciation, and amortisation) is expected to grow at 29% from FY24–27 on a compounded basis. Risk-reward is favourable, with upside from air traffic growth and non-aero expansion. New tariff order at DIAL (Delhi International Airport) boosts profi t visibility, with FY26 expected to be the first year of consolidated profitability in several years. Strong demand outlook with a robust Rs 127 billion order backlog and large project tendering pipeline. Valuation re-rating likely, as the stock currently trades at 43 times FY27 estimated Earnings Per Share (EPS) versus the target multiple of 60 times, benchmarked to global peer Hitachi Energy. Earnings growth of 36% expected from FY25–FY27 on a compounded basis. A look at some of the latest stock recommendations by analysts. These stocks are expected to return between 15% and 57% as per analyst price EMKAY GLOBAL Price Target: Rs 290 CMP: Rs 185 Upside: 56.3%BROKERAGE: MOTILAL OSWAL Financial Services Price Target: Rs 3,000 CMP: Rs 2,441 Upside: 22.9%INFRA BROKERAGE: JEFFERIES Price Target: Rs 100 CMP: Rs 86.5 Upside: 15.6%BROKERAGE: NOMURA Price Target: Rs 2,600 CMP: Rs 2,073 Upside: 25.4%
