United Spirits Limited (UNITDSPR) AI Stock Analysis

• Market Cap: ₹967.23B
• Dividend Yield: 0.83%
• Average Volume (3M): 33.02K
• Price to Earnings (P/E): 57.7
• Beta (1Y): 0.83
• Revenue Growth: 11.13%
• EPS Growth: 15.51%
• Country: IN
• Employees: 2,598
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 6.49
• Shares Outstanding: 727,350,800
• 10 Day Avg. Volume: 56,888
• 30 Day Avg. Volume: 33,024
• PEG Ratio: 5.13
• Price to Book (P/B): 12.32
• Price to Sales (P/S): 8.27
• P/FCF Ratio: 55.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,615.00
• Price Target Upside: 18.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹1,515.00 ▲(11.34% Upside)

United Spirits Limited demonstrates strong financial performance, with robust revenue growth and efficient cash flow generation. The technical analysis suggests positive short-term momentum. However, the high P/E ratio indicates potential overvaluation, which could limit future gains. Overall, the stock is positioned well financially but may face valuation challenges.

Positive Factors

Revenue Growth

Consistent revenue growth reflects effective sales strategies and market demand, supporting long-term business expansion and market position.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling investment in growth opportunities and ensuring operational resilience.

Balance Sheet Health

A strong balance sheet with low leverage ensures financial stability, reducing risk and providing a solid foundation for future growth.

Negative Factors

Equity Reliance

High reliance on equity could pose risks if growth opportunities require significant capital investments, potentially diluting shareholder value.

Valuation Concerns

Perceived overvaluation may limit investor interest and impact stock performance, potentially affecting capital raising and strategic initiatives.

Dividend Yield

A low dividend yield may deter income-focused investors, impacting the attractiveness of the stock and potentially limiting shareholder base expansion.

United Spirits Limited Business Overview & Revenue Model

Company Description

United Spirits Limited manufactures, purchases, and sells alcoholic beverages and other allied spirits in India and internationally. Its alcoholic beverages include Scotch whisky, Indian made foreign liquor whisky, brandy, rum, vodka, and gin. The company primarily owns McDowell's No.1, Royal Challenge, Signature, Antiquity, Black Dog, Director's Special Black, McDowell's Rum, and McDowell's Brandy brands. It also manufactures, imports, and sells Diageo's iconic brands, such as Haig Gold Label, Captain Morgan, Johnnie Walker, J&B, Baileys, Lagavulin, Talisker, VAT 69, Black & White, Smirnoff, and Ciroc. In addition, the company holds the perpetual right to the Bangalore Franchise of Board of Control for Cricket in India –Indian Premier League. It exports its products. The company was formerly known as McDowell & Company Limited and changed its name to United Spirits Limited in October 2006. United Spirits Limited was founded in 1826 and is headquartered in Bengaluru, India. United Spirits Limited operates as a subsidiary of Relay B.V.

How the Company Makes Money

United Spirits Limited generates revenue through the production, marketing, and distribution of alcoholic beverages. The company's primary revenue stream is the sale of its wide range of spirits across various price points and categories. By leveraging its extensive distribution network, United Spirits ensures widespread availability and accessibility of its products in both urban and rural markets. Additionally, the company benefits from strategic partnerships and collaborations with its parent company, Diageo, which enhances its brand portfolio and market reach. Factors such as brand loyalty, marketing initiatives, and product innovation also play a significant role in driving sales and sustaining its competitive edge in the industry.

United Spirits Limited Financial Statement Overview

Summary

United Spirits Limited exhibits strong financial health across all verticals. The income statement highlights robust revenue growth and improving profit margins, supported by efficient cost management. The balance sheet reflects low leverage and strong equity, ensuring financial stability. Impressive cash flow generation underscores the company’s operational efficiency and financial flexibility. While the reliance on equity is notable, the overall financial performance positions the company well for sustained growth and resilience in the industry.

Income Statement

United Spirits Limited has demonstrated strong revenue growth with a 6.6% increase from 2024 to 2025, driven by robust sales strategies. The Gross Profit Margin for 2025 stands at 47.0%, showing efficient cost management. The Net Profit Margin improved to 13.1%, reflecting solid bottom-line performance. EBIT and EBITDA margins are healthy at 32.6% and 18.6%, respectively, indicating strong operational efficiency. The consistent upward trend in revenue and profitability margins highlights the company’s solid market position.

Balance Sheet

The company maintains a strong balance sheet with a Debt-to-Equity Ratio of 0.06, indicating low financial leverage and prudent debt management. The Return on Equity (ROE) improved to 19.5% in 2025, reflecting efficient use of equity. The Equity Ratio stands at 61.2%, showcasing a solid equity base. However, the high reliance on equity could pose risks if growth opportunities require significant capital investments. Overall, the balance sheet reflects financial stability and low risk.

Cash Flow

United Spirits Limited has shown impressive Free Cash Flow growth of 75.0% from 2024 to 2025, driven by strong operating cash flows. The Operating Cash Flow to Net Income Ratio is 1.23, indicating healthy cash generation relative to profitability. The Free Cash Flow to Net Income Ratio of 1.13 further confirms efficient cash conversion. The company’s ability to generate significant cash flow supports its financial flexibility and ability to invest in growth opportunities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	123.29B	120.69B	113.21B	106.12B	97.12B	80.98B
Gross Profit	55.78B	56.72B	39.96B	32.55B	31.10B	35.15B
EBITDA	22.85B	22.43B	22.09B	16.66B	14.78B	10.28B
Net Income	15.14B	15.82B	14.08B	11.37B	8.29B	3.84B
Balance Sheet
Total Assets	0.00	132.48B	112.49B	97.61B	89.11B	85.37B
Cash, Cash Equivalents and Short-Term Investments	28.98B	29.03B	18.61B	11.34B	2.77B	778.00M
Total Debt	0.00	4.80B	2.65B	1.83B	6.05B	10.37B
Total Liabilities	-81.04B	51.44B	41.28B	37.62B	40.37B	44.78B
Stockholders Equity	81.04B	81.04B	71.21B	59.99B	49.54B	41.20B
Cash Flow
Free Cash Flow	0.00	17.85B	10.20B	4.78B	8.43B	16.44B
Operating Cash Flow	0.00	19.47B	11.18B	6.15B	9.77B	18.18B
Investing Cash Flow	0.00	-11.14B	2.26B	-550.00M	-3.13B	-992.00M
Financing Cash Flow	0.00	-5.57B	-4.07B	-5.00B	-6.88B	-17.07B

United Spirits Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1360.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UNITDSPR, the sentiment is Negative. The current price of 1360.7 is below the 20-day moving average (MA) of 1408.53, below the 50-day MA of 1422.30, and below the 200-day MA of 1410.13, indicating a bearish trend. The MACD of -18.28 indicates Positive momentum. The RSI at 30.41 is Neutral, neither overbought nor oversold. The STOCH value of 14.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:UNITDSPR.

United Spirits Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNITDSPR	73 Outperform	₹967.23B	57.68	―	0.83%	11.13%	15.51%
RADICO	65 Neutral	₹394.97B	86.26	―	0.12%	24.62%	59.27%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
GLOBUSSPR	56 Neutral	₹30.66B	40.33	―	0.28%	2.36%	-26.16%

United Spirits Limited Corporate Events

United Spirits Faces INR 0.40 Crore Penalty Over Barcode Lapse in Punjab

United Spirits Limited has disclosed that the Excise Commissioner of Punjab has ordered the company to pay a penalty or compounding amount of INR 0.40 crore in connection with an inadvertent operational lapse in the printing of track-and-trace barcodes. The order, issued on 19 December 2025 and received by the company on 24 December 2025, follows a compounding application filed by United Spirits earlier in December, and the amount must be deposited within 30 days; the company has clarified that the financial impact is limited to the penalty amount and that there will be no impact on its operations or other activities, indicating the issue is contained and not expected to affect its broader business performance.

United Spirits Limited Announces Change in Auditors

United Spirits Limited has announced a change in its statutory auditors, with M/s. Walker Chandiok & Co. LLP set to replace the outgoing M/s. Price Waterhouse & Co. LLP. This transition will occur following the completion of the current auditors’ term at the 27th Annual General Meeting in FY 2026-27. The new auditors will serve a five-year term until the 32nd AGM in FY 2031-32, pending shareholder approval. This change reflects the company’s compliance with regulatory requirements and aims to ensure continued transparency and integrity in its financial reporting.

United Spirits Limited Announces Participation in Upcoming Investor Conferences

United Spirits Limited has announced its participation in several upcoming investors’ conferences, including the CITIC CLSA India Forum, Avendus Spark INDX: Annual Investor Conference, JM Financial India Conference, and Goldman Sachs India Consumer Forum 2025. These meetings, scheduled between November 17 and November 26, 2025, will involve group and one-on-one interactions with analysts and institutional investors. The company has clarified that no unpublished price-sensitive information will be disclosed during these events, indicating a focus on maintaining transparency and compliance with regulatory requirements.

United Spirits Limited Releases Unaudited Financial Results for Q2 2025

United Spirits Limited announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025. The results, reviewed by statutory auditors, are available on the company’s website and stock exchange platforms, reflecting the company’s commitment to transparency and regulatory compliance.

United Spirits Faces Legal Ruling on Water Charges

United Spirits Limited has announced a significant legal development concerning a dispute with the Water Resources Department of Maharashtra. The Bombay High Court has set aside water charge demands amounting to Rs. 443 crores and directed the department to reassess and issue reconciled water charge bills. The company is required to make an interim deposit of INR 66.50 crore while it evaluates its next steps, indicating a potential financial impact and operational adjustments.