IPL cricket team RCB put on sale: Is United Spirits stock worth a buy?

Diageo, the parent company of United Spirits, plans to divest its stake in IPL franchise Royal Challengers Bengaluru. Tech chart suggests United Spirits stock can potentially zoom up to 28% from here.

Shares of United Spirits jumped up to 1.7 per cent in Thursday's trade to an intra-day high of ₹1,475 following reports that the company has initiated a strategic review of its investment in IPL cricket team Royal Challengers Bengaluru (RCB).  United Spirits in an exchange filing on November 5 said it is initiating a strategic review of the investment in its wholly-owned subsidiary Royal Challengers Sports Private Limited (RCSPL).  "RCSPL's business comprises ownership of the "Royal Challengers Bengaluru (RCB)" franchise teams that participate in the Men's Indian Premier League (IPL) and Women's Premier League (WPL) cricket tournaments hosted by the Board of Control for Cricket in India (BCCI) annually", the filing said.  According to reports, Diageo, the British multinational alcoholic beverages company and parent company United Spirits, is said to be seeking a valuation of around $2 billion for the RCB stake sale. READ MORE  RCB men's cricket franchise is the current champions of IPL; while the women's RCB had won the tournament in the previous year.  On the Q2 earnings front, United Spirits had reported 36.1 per cent year-on-year (YoY) growth in consolidated net profit at ₹464 crore for the quarter ended September 2025. The company's net sales value grew by 11.6 per cent YoY to ₹3,173 crore.  Back to the markets, United Spirits had wiped out gains and was trading in the negative zone around 10.15 AM, down 1.5 per cent at ₹1,428. Here's what the technical charts suggest for the stock. 

United Spirits

Current Price: ₹1,429  Likely Target: ₹1,825  Upside Potential: 27.7%  Support: ₹1,428; ₹1,392; ₹1,364  Resistance: ₹1,465; ₹1,500; ₹1,600; ₹1,740  United Spirits stock had witnessed a bullish breakout on October 31; post which the stock has been trading sideways. The daily chart suggests that the near-term bias at the counter is likely to remain upbeat as long as the stock holds above ₹1,428. 

 

  Below which, the 200-Day Moving Average (200-DMA) at ₹1,392 and the trend line support at 1,364 are likely to act as key bullish pivots.  On the upside, the stock is seen facing an overhead resistance in the form of the weekly super trend line at ₹1,465. The stock has been languishing below this key indicator since mid-February 2025.  Breakout above ₹1,465 levels can infuse fresh life in United Spirits. In the bullish case scenario, the stock can potentially soar to ₹1,825 levels, suggests the long-term chart. On its way up, the stock may counter resistance around ₹1,500, ₹1,600 and ₹1,740 levels.