Oil prices hold sharp losses with focus on secondary India tariffs
On Thursday, Citi analysts reaffirmed a Buy rating on United Spirits Ltd. (NSE:UNSP) stock, maintaining a price target of INR1,800.00. The decision follows a detailed discussion with Pradeep Jain, CFO, and Shweta Arora, Head of Investor Relations, highlighting several key factors impacting the company’s performance.
During the conversation, it was noted that current demand trends are challenging, particularly in the lower-end market segments. However, expectations are that the pressure will lessen as consumer inflation decreases. Despite a recent moderation, the premiumization ladder is expected to recover within two to three quarters.
Further insights include the potential benefits of the India-UK Free Trade Agreement, which could accelerate scotch consumption and premiumization in India, potentially leading to margin expansion. The policy environment appears to be becoming more favorable, which could support the company’s growth.
Innovation and renovation are emphasized as crucial growth drivers, alongside a focused commercial strategy in the on-premise channel. The company aims to sustain its EBITDA margin at current levels over the next two to three years, reinforcing the positive outlook shared by Citi analysts.
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