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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of United Spirits Ltd

Basic Stock Data

Last Updated: June 21, 2024, 5:40 pm

Market Cap 94,875 Cr.
Current Price 1,305
High / Low1,314/866
Stock P/E66.8
Book Value 97.9
Dividend Yield0.69 %
ROCE28.7 %
ROE21.7 %
Face Value 2.00
PEG Ratio4.08

Competitors of United Spirits Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Som Distilleries & Breweries Ltd 2,415 Cr. 125156/84.527.9 29.00.08 %19.4 %18.5 % 2.00
United Breweries Ltd 56,576 Cr. 2,1402,174/1,464138 1580.47 %13.5 %10.1 % 1.00
Tilaknagar Industries Ltd 5,255 Cr. 273291/14037.3 33.90.09 %22.3 %25.0 % 10.0
Aurangabad Distillery Ltd 224 Cr. 273369/16910.7 1070.00 %29.7 %31.5 % 10.0
Radico Khaitan Ltd 23,836 Cr. 1,7861,885/1,14193.2 1780.17 %13.2 %11.3 % 2.00
Industry Average17,661.20 Cr919.4061.42101.180.16%19.62%19.28%5.00

Quarterly Result

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

Last Updated: June 11, 2024, 3:32 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 6:47 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales10,37810,5089,2548,4958,8188,5919,3419,3258,1319,71210,61211,321
Expenses9,28713,8769,6198,1627,8267,3817,9477,7567,0808,1179,2089,321
Operating Profit1,091-3,368-3663339911,2091,3941,5691,0511,5951,4042,000
OPM %11%-32%-4%4%11%14%15%17%13%16%13%18%
Other Income146681-360648-2651727089-25-117262208
Interest9851,3236874573752782372121888810476
Depreciation178203223157189192215285299304282275
Profit before tax73-4,213-1,6353661639121,0121,1605401,0871,2791,857
Tax %244%-7%-3%61%43%28%32%47%33%25%12%24%
Net Profit-105-4,489-1,687143936526846213628111,1261,408
EPS in Rs-1.55-61.78-23.231.901.388.729.649.075.2811.4015.6219.36
Dividend Payout %-31%0%0%0%0%0%0%0%0%0%0%26%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-4175.24%62.42%108.48%-34.97%601.08%4.91%-9.21%-41.71%124.03%38.84%25.04%
Change in YoY Net Profit Growth (%)0.00%4237.66%46.06%-143.44%636.04%-596.17%-14.12%-32.50%165.74%-85.19%-13.80%

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
Investments2362182382167700252202222861,298
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

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

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-7.00-11.00-370.00329.00987.00-2.00-1.00-1.000.00-604.00-182.002.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

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%

Financial Efficiency Indicators Chart

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

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Franklin India Flexi Cap Fund3,600,0002.77392.312,242,5002024-06-1260.54%
SBI Balanced Advantage Fund2,242,5000.89244.382,242,5002024-06-120%
SBI Contra Fund1,907,5650.88207.882,242,5002024-06-12-14.94%
Nippon India ELSS Tax Saver Fund1,700,0001.31185.262,242,5002024-06-12-24.19%
Franklin India ELSS Tax Saver Fund1,650,0002.98179.812,242,5002024-06-12-26.42%
Canara Robeco Bluechip Equity Fund1,345,0001.24146.572,242,5002024-06-12-40.02%
UTI MNC Fund1,300,0005.2141.672,242,5002024-06-12-42.03%
UTI Large Cap Fund739,3110.6780.572,242,5002024-06-12-67.03%
Nippon India ETF Nifty Next 50 Junior BeES736,2461.980.232,242,5002024-06-12-67.17%
Canara Robeco Equity Hybrid Fund650,0000.7370.832,242,5002024-06-12-71.01%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)19.8316.0111.685.419.29
Diluted EPS (Rs.)19.8316.0111.685.419.29
Cash EPS (Rs.)23.2319.3815.349.1212.51
Book Value[Excl.RevalReserv]/Share (Rs.)98.2282.4767.1055.8750.75
Book Value[Incl.RevalReserv]/Share (Rs.)98.2282.4767.1055.8750.75
Revenue From Operations / Share (Rs.)156.15145.86133.69111.92128.36
PBDIT / Share (Rs.)30.7020.4822.6215.0421.94
PBIT / Share (Rs.)26.9116.6018.4410.9218.02
PBT / Share (Rs.)25.6317.5914.967.4516.02
Net Profit / Share (Rs.)19.4315.4911.165.008.59
NP After MI And SOA / Share (Rs.)19.4215.6211.415.289.07
PBDIT Margin (%)19.6614.0416.9213.4317.09
PBIT Margin (%)17.2311.3713.799.7514.03
PBT Margin (%)16.4112.0611.186.6512.47
Net Profit Margin (%)12.4410.628.344.466.69
NP After MI And SOA Margin (%)12.4310.708.534.717.06
Return on Networth / Equity (%)19.7718.9316.729.3117.67
Return on Capital Employeed (%)26.5519.6726.4118.8833.93
Return On Assets (%)12.5111.649.294.497.44
Total Debt / Equity (X)0.000.000.060.210.43
Asset Turnover Ratio (%)1.081.121.110.921.03
Current Ratio (X)1.891.721.351.110.97
Quick Ratio (X)1.361.100.780.630.58
Inventory Turnover Ratio (X)2.452.432.322.042.45
Interest Coverage Ratio (X)29.2914.3418.685.827.52
Interest Coverage Ratio (Post Tax) (X)19.7610.1512.093.283.63
Enterprise Value (Cr.)80992.7554142.2664690.2741154.3636744.78
EV / Net Operating Revenue (X)7.155.106.665.063.94
EV / EBITDA (X)36.3836.3439.3637.6823.05
MarketCap / Net Operating Revenue (X)7.265.196.644.973.78
Price / BV (X)11.559.1713.029.819.45
Price / Net Operating Revenue (X)7.265.196.644.973.78
EarningsYield0.010.020.010.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1,428.91

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 9.50% compared to the current price 1305

Intrinsic Value: 1,662.90

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 27.42% compared to the current price ₹1305

Last 5 Year EPS CAGR: 16.37%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (9.08 cr) and profit (171.17 cr) over the years.
  1. The stock has a low average ROCE of 11.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 75.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 160.33, which may not be favorable.
  4. The company has higher borrowings (3,768.31) compared to reserves (3,525.38), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in United Spirits Ltd:
    1. Net Profit Margin: 12.44%
      • 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: 26.55% (Industry Average ROCE: 19.42%)
      • 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. ROE%: 19.77% (Industry Average ROE: 17.32%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 19.76
      • 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.
    5. Quick Ratio: 1.36
      • 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.
    6. Stock P/E: 66.8 (Industry average Stock P/E: 71.98)
      • 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.
    7. Total Debt / Equity: 0.00
      • 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.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

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

FAQ

What is the latest fair value of United Spirits Ltd?

The latest fair value of United Spirits Ltd is ₹1428.91.

What is the Market Cap of United Spirits Ltd?

The Market Cap of United Spirits Ltd is 94,875 Cr..

What is the current Stock Price of United Spirits Ltd as on 21 June 2024?

The current stock price of United Spirits Ltd as on 21 June 2024 is ₹1,305.

What is the High / Low of United Spirits Ltd stocks in FY 2024?

In FY 2024, the High / Low of United Spirits Ltd stocks is 1,314/866.

What is the Stock P/E of United Spirits Ltd?

The Stock P/E of United Spirits Ltd is 66.8.

What is the Book Value of United Spirits Ltd?

The Book Value of United Spirits Ltd is 97.9.

What is the Dividend Yield of United Spirits Ltd?

The Dividend Yield of United Spirits Ltd is 0.69 %.

What is the ROCE of United Spirits Ltd?

The ROCE of United Spirits Ltd is 28.7 %.

What is the ROE of United Spirits Ltd?

The ROE of United Spirits Ltd is 21.7 %.

What is the Face Value of United Spirits Ltd?

The Face Value of United Spirits Ltd is 2.00.

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