USL faces headwind as concerns over GST on extra neutral alcohol remain

While the stock has gained, analysts say investors should be cautious, given regulatory headwinds and valuations

The United Spirits stock was up 5.5 per cent on Monday as the Good and Services Tax (GST) Council did not take up the issue of including extra neutral alcohol (ENA) under the GST regime.
 
The stock had declined about 10 per cent in the last couple of weeks on worries that the ENA will be brought under the ambit of the GST.
 
Analysts at Deutsche Bank said no decision on the ENA in the GST Council meet on Saturday provided an upside.
 
The ENA is a key input used in the production of alcohol beverages and