United Spirits (McDowells) Short Term Target
United Spirits Limited, is an Indian alcoholic beverages company, and the world’s second-largest spirits company by volumes is a subsidiary of Diageo, its famous brands include Bagpiper, Antiquity, Signature, Royal Challenge. Performance wise the company has delivered a ROE of 18.30% and ROCE of 22.78%.
While the Debt to Equity stands at 0.64 Valuation wise the company has a TTMEPS of 2.96 and trades at a TTMP/E of 179.25 the P/B stands at 10.35. The promoter hold 56.76% stake in the company whereas FII’s hold 19.68% , market cap of 38,464.62. The company has a debt of 2373 crores and cash of 73.50 in its books.
Although the statutory overhangs are always a headwind for the company, and the pandemic had an impact on the company’s financial. With gradual unlocking of the economy and the festival season ahead the picture looks rosy for the year ahead the company is well-placed to deliver good returns for its shareholders.
The share is trading at levels of 530, the fifty-two week high for the share is 742.70 we recommend a short term target 573 and the stop loss should be placed at 523. In coming two months beverage company will show a good rally upside.