JP Morgan has maintained a ‘Neutral’ rating on United Spirits with a target price of ₹1,415, implying a 6% downside from the current market price (CMP) of ₹1,499. The Q2 results showed a good performance on both revenue and margin fronts.
Key highlights include:
- Prestige segment volumes benefitted from the festive season and expansion in Andhra Pradesh.
- The popular segment saw improved net sales value (NSV) growth, the highest since Q1FY23.
- Margins improved due to a favorable product mix, although this was offset by higher staff costs.
The brokerage remains cautious on the stock despite the positives, citing a balanced risk-reward scenario.
