JPMorgan has maintained its overweight rating on United Spirits Limited (USL) but cut the target price to ₹1,600, citing a more cautious stance on growth following recent tax-related headwinds. The brokerage lowered its FY26 and FY27 EBITDA estimates by 5–6% to reflect the revenue decline in Maharashtra, which has impacted near-term performance.
Despite the revision, JPMorgan believes the sharp underperformance of the stock offers a good entry point for investors. It noted that the company’s growth outlook remains supported by strong brand equity in its premium portfolio and continued execution on its cost-efficiency measures. The brokerage said while near-term pressure from state-level tax increases cannot be ignored, USL remains well positioned to deliver sustainable long-term earnings growth once the impact stabilises.
Disclaimer: The views and recommendations made in this article are those of JPMorgan. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
