Citi has maintained its Buy rating on United Spirits Ltd (USL) with a target price of ₹1,800 following a recent management interaction.
Citi said that the near-term demand outlook remains challenging, but expects premiumization trends to recover over the next 2–3 quarters. The management is optimistic about growth prospects from the India-UK Free Trade Agreement, which is likely to provide a further boost to both premiumization and export opportunities.
On the regulatory side, Citi noted that the policy environment is becoming more favourable, which should support the sector’s medium-term outlook.
USL is also focused on maintaining EBITDA margins at current levels over the next 2–3 years, despite the evolving demand backdrop.
Disclaimer: The views and target prices mentioned in this article are as stated by Citi. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
