United Spirits Limited is an Indian alcoholic beverages company and the world’s second-largest spirits company by volume. It is a subsidiary of Diageo and is headquartered in Bangalore, Karnataka. USL’s portfolio includes popular brands like Johnnie Walker, Black Dog, Smirnoff, and Captain Morgan. It exports its products to over 37 countries and promotes responsible drinking.
With a history of constant growth and a track record of delivering solid financial outcomes, the company is a desirable option for investors searching for a reliable investment opportunity.
In this article, we will examine the share price goal for United Spirits Ltd. from 2024 to 2030 and determine whether it is a wise investment. So, relax, grab a beverage, and let’s explore United Spirits Ltd.’s world.
United Spirits Q4 Results: Net Profit Surges 88% to Rs 384 Crore, Recommends Rs 5 Dividend
- United Spirits Ltd (USL) reported a significant 88% surge in standalone net profit for Q4 ending March 2024, reaching Rs 384 crore compared to Rs 204 crore in the same period last year.
- Revenue from operations witnessed a healthy growth of 10%, climbing to Rs 6,394 crore from Rs 5,783 crore in the previous fiscal quarter.
- Total income in the March quarter surged to Rs 6,623 crore, despite a 7% increase in total expenses to Rs 6,132 crore.
- USL’s EBITDA for Q4FY24 rose by 7% to Rs 361 crore and by 31% to Rs 1,708 crore for the fiscal year, with margins standing at 13.6% in Q4FY24 and 16% for FY24.
- Net sales value for Q4FY24 witnessed a commendable 7% uptick, reaching Rs 2,666 crore.
- The company’s board recommended a dividend of Rs 5 per share for FY24, underscoring its commitment to delivering shareholder value.
- Hina Nagarajan, CEO & Managing Director, highlighted the achievement of double-digit growth and mid-teen margins amid challenging market conditions.
- The company’s iconic trademark is being renovated and expanded under the “House of McDowell’s” umbrella to tap into new consumer segments.
- Nagarajan expressed confidence in their strategy, especially after winning awards like “Single Malt Whisky of the Year” at the London Spirits Competition and the success of the Royal Challengers Bengaluru Women’s Premier League (WPL) team in March 2024.
- Overall, USL’s Q4 results reflect a strong performance and strategic initiatives positioning the company for continued growth and success in the beverage alcohol industry.
Below are the trading platforms that you can use to purchase United Spirits shares:
- Zerodha
- Upstox
- Groww
- AngelOne
- ICICIDirect
We recommend PayTM Money:
| When | Maximum Price | Minimum Price |
| June 2024 | 1,195.30 | 1,039.39 |
| July 2024 | 1,183.35 | 1,029.00 |
| August 2024 | 1,230.68 | 1,070.16 |
| September 2024 | 1,279.91 | 1,112.97 |
| October 2024 | 1,254.82 | 1,091.14 |
| November 2024 | 1,305.01 | 1,134.79 |
| December 2024 | 1,318.06 | 1,146.14 |
In June 2024, United Spirits’ maximum price is expected to reach ₹1,195.30, while the minimum price is projected to be around ₹1,039.39. Moving into July, the maximum price is forecasted to be ₹1,183.35, with a minimum of ₹1,029.00. By August, the maximum price is anticipated to rise to ₹1,230.68, while the minimum may reach ₹1,070.16. September could see the maximum price climb to ₹1,279.91, with the minimum likely around ₹1,112.97. October’s maximum is expected to be approximately ₹1,254.82, and the minimum could be near ₹1,091.14. November might bring a maximum price of ₹1,305.01 and a minimum of ₹1,134.79. Finally, December could see the maximum price hitting ₹1,318.06, while the minimum might be around ₹1,146.14.
| When | Maximum Price | Minimum Price |
| January 2025 | 1,331.24 | 1,024.03 |
| February 2025 | 1,344.69 | 1,034.37 |
| March 2025 | 1,372.92 | 1,056.10 |
| April 2025 | 1,359.33 | 1,045.64 |
| May 2025 | 1,319.74 | 1,015.18 |
| June 2025 | 1,379.13 | 1,060.87 |
| July 2025 | 1,352.09 | 1,040.07 |
| August 2025 | 1,393.90 | 1,072.23 |
| September 2025 | 1,410.63 | 1,085.10 |
| October 2025 | 1,447.31 | 1,113.31 |
| November 2025 | 1,483.49 | 1,141.15 |
| December 2025 | 1,550.25 | 1,192.50 |
As we step into 2025, United Spirits’ price projections hint at fluctuating between ₹1,024.03 and ₹1,550.25 from January to December.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹1,750.40 | ₹1,225.28 |
| 2027 | ₹1,925.44 | ₹1,347.81 |
| 2028 | ₹2,695.62 | ₹1,347.81 |
| 2029 | ₹2,333.87 | ₹1,166.93 |
| 2030 | ₹2,534.03 | ₹2,023.82 |
In the coming years, United Spirits is projected to witness fluctuating prices. By 2026, the price is expected to range between ₹1,225.28 and ₹1,750.40. Moving into 2027, prices may vary from ₹1,347.81 to ₹1,925.44. By 2028, a significant increase is anticipated, with prices ranging from ₹1,347.81 to ₹2,695.62. In 2029, prices are forecasted to fluctuate between ₹1,166.93 and ₹2,333.87. Finally, by 2030, prices could range between ₹2,023.82 and ₹2,534.03.
Financial Condition of United Spirits: Last 5 years
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | |
| Sales + | 9,325 | 8,131 | 9,712 | 10,612 | 11,321 |
| Expenses + | 7,756 | 7,080 | 8,117 | 9,208 | 9,321 |
| Operating Profit | 1,569 | 1,051 | 1,595 | 1,404 | 2,000 |
| OPM % | 17% | 13% | 16% | 13% | 18% |
| Other Income + | 89 | -25 | -117 | 262 | 208 |
| Interest | 212 | 188 | 88 | 104 | 76 |
| Depreciation | 285 | 299 | 304 | 282 | 275 |
| Profit before tax | 1,160 | 540 | 1,087 | 1,279 | 1,857 |
| Tax % | 47% | 33% | 25% | 12% | 24% |
| Net Profit + | 621 | 362 | 811 | 1,126 | 1,408 |
| EPS in Rs | 9.07 | 5.28 | 11.4 | 15.62 | 19.36 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 26% |
- Sales Growth: The company has experienced steady growth in sales over the past five years, with sales increasing from ₹9,325 crore in March 2020 to ₹11,321 crore in March 2024.
- Expenses: Similarly, expenses have also increased, reflecting the company’s expansion and operational activities, rising from ₹7,756 crore in March 2020 to ₹9,321 crore in March 2024.
- Operating Profit: The operating profit has shown fluctuations but generally trended upwards, from ₹1,569 crore in March 2020 to ₹2,000 crore in March 2024, with an OPM percentage of 18% in the latest fiscal year.
- Other Income: Other income sources have varied over the years, with notable fluctuations, ranging from ₹89 crore in March 2020 to ₹208 crore in March 2024.
- Interest and Depreciation: Both interest and depreciation expenses have fluctuated but remained relatively stable compared to other financial metrics.
- Profit Before Tax: The profit before tax has generally shown an upward trend, reaching ₹1,857 crore in March 2024, indicating strong financial performance.
- Net Profit: The net profit has consistently increased over the years, from ₹621 crore in March 2020 to ₹1,408 crore in March 2024, reflecting the company’s profitability and growth.
- Earnings Per Share (EPS): The EPS has also witnessed a significant rise, from ₹9.07 in March 2020 to ₹19.36 in March 2024, indicating enhanced shareholder value.
- Dividend Payout: While the company did not distribute any dividends in the initial years, it started allocating dividends, with a payout percentage of 26% in March 2024, reflecting the company’s commitment to returning value to shareholders.
FAQS
As of May 25th, 2024, the current share price of United Spirits is 1,178 INR.
According to our analysis, United Spirits could reach a maximum of ₹1,550.25 by the end of 2025.
The share price target for United Spirits in 2030 is projected to range between ₹2,023.82 and ₹2,534.03
Factors like strong financial performance, growth in sales and revenue, expanding market share, and positive market sentiment can contribute to the rise in United Spirits’ share price.
What are the risks associated with investing in United Spirits?
The risks associated with investing in United Spirits include market volatility, regulatory changes, competition, and changes in consumer preferences.
Considering United Spirits Ltd’s strong financial performance, diverse and popular brand portfolio, and positive market outlook, investing in its shares could be a favorable option for those seeking a reliable and potentially rewarding investment opportunity. However, as with any investment, it’s important to carefully assess associated risks and conduct thorough research before making a decision.
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Conclusion
United Spirits’ Q4 results for FY24 demonstrate Strong performance with an 88% surge in net profit to Rs 384 crore and a 10% growth in revenue to Rs 6,394 crore. Key financial indicators like EBITDA and net sales value also showed positive trends, highlighting operational efficiency. The company’s strategic initiatives, including brand renovation and expansion, reflect forward-thinking market strategies. The board’s recommendation of a Rs 5 per share dividend underscores its commitment to shareholder value. CEO Hina Nagarajan’s focus on achieving double-digit growth and mid-teen margins reaffirms confidence in the company’s leadership. Overall, United Spirits’ Q4 results reflect resilience, adaptability, and a strong growth trajectory in the beverage alcohol industry.
What did we learn?
- 1 United Spirits Q4 Results: Net Profit Surges 88% to Rs 384 Crore, Recommends Rs 5 Dividend
- 2 How to purchase United Spirits shares?
- 3 United Spirits Share Price Prediction: 2024, 2025 to 2030
- 4 Financial Condition of United Spirits: Last 5 years
- 5 FAQS
- 5.1 What is the current share price of United Spirits?
- 5.2 What is the share target price for United Spirits by 2025?
- 5.3 What is United Spirits share price target for 2030?
- 5.4 What factors can contribute to the rise in United Spirits’ share price?
- 5.5 What are the risks associated with investing in United Spirits?
- 5.6 Should I invest in United Spirits’ shares?
- 6 Conclusion
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