United Spirits seem flat, near-term demand triggers lacking for stock

Q4 performance of the country's largest liquor was better than estimates

The stock of United Spirits, the country’s largest liquor company by market capitalisation, has gained 2 per cent after its fourth quarter (Q4 FY24) results last week gave double-digit growth guidance.

The company’s revenue grew 7 per cent year-on-year (Y-o-Y), helped by the expansion of the prestige and above (P&A) segment. The premium brands segment accounts for 88 per cent of overall revenues and had revenue growth of 3.7 per cent. It grew 4 per cent by volume.

Premiumisation is helping the P&A portfolio, and better pricing is helping drive value growth in the category. United Spirits expects to maintain double-digit growth