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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of United Spirits Ltd

About the Company - United Spirits Ltd

United Spirits Ltd. is a Public Limited Listed company incorporated on 31/03/1999 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L01551KA1999PLC024991 and registration number is 024991. Currently Company is involved in the business activities of Distilling, rectifying and blending of spirits; ethyl alcohol production from fermented materials. Company’s Total Operating Revenue is Rs. 9381.70 Cr. and Equity Capital is Rs. 145.30 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Beverages & DistilleriesUB Tower, No. 24, Vittal Mallya Road, Bengaluru Karnataka 560001investor.india@diageo.com
http://www.diageoindia.com
Management
NamePosition Held
Mr. Mahendra Kumar SharmaChairman & Ind.Director
Ms. Hina NagarajanManaging Director & CEO
Dr.(Mrs.) Indu ShahaniIndependent Director
Mr. D SivanandhanIndependent Director
Mr. Rajeev GuptaIndependent Director
Mr. V K ViswanathanIndependent Director
Mr. John Thomas KennedyNon Executive Director
Mr. Mark Dominic SandysNon Executive Director
Mr. Pradeep JainExecutive Director & CFO
Ms. Mamta SundaraNon Executive Director

United Spirits Ltd. Share Price Update

Share PriceValue
Today₹1,094.60
Previous Day₹1,111.90

Basic Stock Data of United Spirits Ltd

Market Cap 82,493 Cr.
Current Price 1,134
High / Low1,176/731
Stock P/E64.8
Book Value 93.6
Dividend Yield0.34 %
ROCE20.0 %
ROE17.5 %
Face Value 2.00

Data Source: screener.in

Competitors of United Spirits Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Radico Khaitan Ltd 22,262 Cr. 1,6651,885/1,06994.2 1680.18 %11.6 %9.82 % 2.00
United Breweries Ltd 45,497 Cr. 1,7211,914/1,342134 1520.43 %11.4 %8.27 % 1.00
Som Distilleries & Breweries Ltd 2,010 Cr. 259390/11224.4 66.50.10 %15.6 %18.1 % 5.00
Tilaknagar Industries Ltd 4,367 Cr. 227291/95.532.6 29.60.11 %15.5 %23.9 % 10.0
Industry Average18.25 Cr12271.3104.030.21%13.53%15.02%4.5

United Spirits Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,6732,2301,7222,5082,9472,5362,4192,9112,7792,5032,6682,8673,002
Expenses2,2161,8341,5332,0382,4292,1042,0472,4742,4072,2681,9552,4012,516
Operating Profit457396188469519432372437372235713466486
OPM %17%18%11%19%18%17%15%15%13%9%27%16%16%
Other Income39-5-3840-97-12389-127057152
Interest433325739162221243642616
Depreciation79777476767783666569746563
Profit before tax37428151390404241254739155130639446459
Tax %25%28%2%27%27%26%-3%26%-38%21%25%24%24%
Net Profit28020350286295179261548214103477339350
EPS in Rs3.952.870.764.024.122.503.667.612.951.416.554.664.81

United Spirits Ltd Quarterly Chart

United Spirits Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9,13910,37810,5089,2548,4958,8188,5919,3419,3258,1319,71210,61211,040
Expenses8,0219,28713,8769,6198,1627,8267,3817,9477,7567,0808,1179,2089,139
Operating Profit1,1181,091-3,368-3663339911,2091,3941,5691,0511,5951,4041,901
OPM %12%11%-32%-4%4%11%14%15%17%13%16%13%17%
Other Income240146681-360648-2651727089-25-117262128
Interest8769851,3236874573752782372121888810483
Depreciation147178203223157189192215285299304282271
Profit before tax33573-4,213-1,6353661639121,0121,1605401,0871,2791,674
Tax %44%244%-7%-3%61%43%28%32%47%33%25%12%
Net Profit187-105-4,489-1,687143936526846213628111,1261,269
EPS in Rs2.87-1.55-61.78-23.231.901.388.729.649.075.2811.4015.6217.43
Dividend Payout %17%-31%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%

United Spirits Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-156.15%-4175.24%62.42%108.48%-34.97%601.08%4.91%-9.21%-41.71%124.03%38.84%
Change in YoY Net Profit Growth (%)0.00%-4019.09%4237.66%46.06%-143.44%636.04%-596.17%-14.12%-32.50%165.74%-85.19%

United Spirits Ltd Growth

Compounded Sales Growth
10 Years:0%
5 Years:4%
3 Years:4%
TTM:4%
Compounded Profit Growth
10 Years:26%
5 Years:12%
3 Years:19%
TTM:7%
Stock Price CAGR
10 Years:9%
5 Years:17%
3 Years:28%
1 Year:56%
Return on Equity
10 Years:-3%
5 Years:17%
3 Years:16%
Last Year:18%

United Spirits Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital126126145145145145145145145145145146146
Reserves4,5364,6612,8875141,4891,6402,2742,9453,5833,9744,8085,8546,665
Borrowings8,1648,2428,3074,9874,2424,1443,4212,8832,5701,037605183203
Other Liabilities3,0313,4533,5182,2422,4522,9673,0863,1352,5463,3543,3043,5344,011
Total Liabilities15,85716,48314,8587,8898,3298,8968,9269,1098,8448,5118,8639,71611,025
Fixed Assets7,8817,8695,7001,9211,8871,9171,7911,8411,9561,8931,8551,5341,564
CWIP10813111011428219910211812197968360
Investments23621823821677002522-02222861,298
Other Assets7,6328,2658,8105,6376,0846,7807,0337,1246,7456,5216,6907,8148,103
Total Assets15,85716,48314,8587,8898,3298,8968,9269,1098,8448,5118,8639,71611,025

United Spirits Ltd Reserves and Borrowings Chart

United Spirits Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 7561,969-552-1962836479259487831,818977615
Cash from Investing Activity -1,070-1,121-2523,855733-227104-66-194-99-313-53
Cash from Financing Activity 22-9921,235-4,002-1,155-475-966-808-740-1,707-688-501
Net Cash Flow-292-145431-343-139-566374-15012-2361

United Spirits Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days71857969991221159989988984
Inventory Days315247185123150226263235199254229193
Days Payable2281861155678144195171124176168154
Cash Conversion Cycle158146148136171205183163165177150122
Working Capital Days895596839998867458595754
ROCE %10%8%-24%-3%15%15%18%20%21%14%25%20%

United Spirits Ltd Financial Efficiency Indicators Chart

United Spirits Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters56.76%56.76%56.73%56.73%56.73%56.73%56.74%56.74%56.68%56.68%56.68%56.68%
FIIs18.88%18.98%19.08%17.94%17.73%16.76%16.07%15.98%15.38%15.92%16.51%16.23%
DIIs7.98%8.21%9.65%10.41%10.41%10.85%11.61%12.08%12.70%12.64%12.32%12.49%
Government1.73%1.73%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public14.66%14.33%14.53%14.92%15.12%15.65%15.58%15.20%15.24%14.77%14.49%14.60%
No. of Shareholders1,87,1391,83,4111,91,6992,34,9262,41,1112,52,2642,74,3072,58,1892,68,9932,49,3952,49,7412,64,583

United Spirits Ltd Shareholding Pattern Chart

No. of United Spirits Ltd Shareholders

United Spirits Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Franklin India Flexi Cap Fund36000002.77392.31
SBI Balanced Advantage Fund22425000.89244.38
SBI Contra Fund19075650.88207.88
Nippon India ELSS Tax Saver Fund17000001.31185.26
Franklin India ELSS Tax Saver Fund16500002.98179.81
Canara Robeco Bluechip Equity Fund13450001.24146.57
UTI MNC Fund13000005.2141.67
UTI Large Cap Fund7393110.6780.57
Nippon India ETF Nifty Next 50 Junior BeES7362461.980.23
Canara Robeco Equity Hybrid Fund6500000.7370.83

United Spirits Ltd ROCE Trend

United Spirits Ltd EPS Trend

United Spirits Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)16.0111.685.419.299.87
Diluted EPS (Rs.)16.0111.685.419.299.87
Cash EPS (Rs.)19.3815.349.1212.5112.39
Book Value[Excl.RevalReserv]/Share (Rs.)82.4767.1055.8750.7542.49
Book Value[Incl.RevalReserv]/Share (Rs.)82.4767.1055.8750.7542.49
Revenue From Operations / Share (Rs.)145.86133.69111.92128.36128.57
PBDIT / Share (Rs.)20.4822.6215.0421.9420.13
PBIT / Share (Rs.)16.6018.4410.9218.0217.18
PBT / Share (Rs.)17.5914.967.4516.0213.95
Net Profit / Share (Rs.)15.4911.165.008.599.43
NP After MI And SOA / Share (Rs.)15.6211.415.289.079.64
PBDIT Margin (%)14.0416.9213.4317.0915.66
PBIT Margin (%)11.3713.799.7514.0313.36
PBT Margin (%)12.0611.186.6512.4710.85
Net Profit Margin (%)10.628.344.466.697.33
NP After MI And SOA Margin (%)10.708.534.717.067.49
Return on Networth / Equity (%)18.9316.729.3117.6722.65
Return on Capital Employeed (%)19.6726.4118.8833.9331.83
Return On Assets (%)11.649.294.497.447.68
Long Term Debt / Equity (X)0.000.000.000.000.25
Total Debt / Equity (X)0.000.060.210.430.92
Asset Turnover Ratio (%)1.121.110.921.031.02
Current Ratio (X)1.721.351.110.971.01
Quick Ratio (X)1.100.780.630.580.64
Inventory Turnover Ratio (X)2.432.322.042.452.23
Interest Coverage Ratio (X)14.3418.685.827.526.17
Interest Coverage Ratio (Post Tax) (X)10.1512.093.283.633.88
Enterprise Value (Cr.)54142.2664690.2741154.3636744.7842759.25
EV / Net Operating Revenue (X)5.106.665.063.944.58
EV / EBITDA (X)36.3439.3637.6823.0529.23
MarketCap / Net Operating Revenue (X)5.196.644.973.784.30
Price / BV (X)9.1713.029.819.4513.00
Price / Net Operating Revenue (X)5.196.644.973.784.30
EarningsYield0.020.010.010.010.01

United Spirits Ltd Profitability Ratios (%)

United Spirits Ltd Liquidity Ratios

United Spirits Ltd Liquidity Ratios (%)

United Spirits Ltd Interest Coverage Ratios (X)

United Spirits Ltd Valuation Ratios

Fair Value / Intrinsic Value of United Spirits Ltd

Fair Value: ₹1065.03

The stock is overvalued by 6.08% compared to the current price ₹1134

*Investments are subject to market risks

Strength and Weakness of United Spirits Ltd

StrengthWeakness
  1. The company has shown consistent growth in sales (9.08 cr) and profit (183.77 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 16.23 and average Dividend Yield of 12.46%.
  2. The stock has a low average ROCE of 11.58%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 75.67, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 160.33, which may not be favorable.
  5. The company has higher borrowings (3,768.31) compared to reserves (3,525.38), which may suggest financial risk.

Should I Buy United Spirits Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in United Spirits Ltd:
    1. Net Profit Margin: 10.62% (Higher values are generally favorable)
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 19.67% (Industry Average ROCE: 13.53%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 10.15 (Higher values, preferably > 2, are recommended)
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 1.10 (Higher values, preferably > 1, are recommended)
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 64.4 (Industry average Stock P/E: 72.63)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.00 (Lower values, preferably < 1, are preferred)
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in United Spirits Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE