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Bloomberg Quint
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United Spirits Q4 Preview: Robust Summer, Cooling Barley Prices, Sustained Momentum To Drive Growth
- United Spirits is set to announce its financial results for the January–March quarter with expectations of a 54.6% year-on-year drop in revenue to Rs 2,953.9 crore.
- Brokerages predict strong growth in the alcoholic beverages sector supported by regulatory developments, easing input costs, and robust demand, especially in the premium segment.
- BofA assigns United Spirits a price target of Rs 1,585 citing improved visibility across regulatory and business fronts.
- Nirmal Bang forecasts double-digit revenue growth and margin expansion for United Spirits, driven by a robust summer season and sustained momentum in the Prestige & Above portfolio.
- Investec expects sector-wide double-digit growth with supportive state policies and favorable commodity costs benefiting Ebitda performance.
- United Spirit's Q4 consolidated revenue is estimated to decline but Ebitda is expected to rise and margins to expand significantly compared to the previous year.
- Brokerages like BofA, Nirmal Bang, and Investec provide positive outlooks for United Spirits with varying target prices and growth expectations in the Alco-Bev sector.
- Key factors influencing the valuation of United Spirits include regulatory changes, input costs, demand trends, and competition from other players in the market.
- Nuvama anticipates a favorable showing for liquor companies driven by premiumization and supportive policies, while IIFL Capital expects sales growth, margin expansion, and stable raw material prices for United Spirits in Q4.
- Overall, the sector is poised for growth with positive sentiment towards United Spirits driven by multiple factors contributing to revenue and margin improvements.
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