United Spirits Limited (USL) shares surged more than 2% after Goldman Sachs initiated a ‘Buy’ rating on the stock, with a target price of ₹1,650. This target represents a potential upside of around 14% from the current market price of ₹1,446.75. Goldman Sachs highlighted several key factors supporting its optimistic outlook for USL.

Key Insights from Goldman Sachs’ Report:

  1. Premiumisation Trend: The Indian spirit market is witnessing a shift towards premium products, creating opportunities for USL to capitalize on the growing demand for high-end offerings.
  2. India-UK Trade Deal: A potential trade agreement between India and the UK could reduce import tariffs on Scotch, which would significantly support USL’s growth in the Scotch segment.
  3. Market Dynamics: Although India is currently experiencing a near-term consumption slowdown, growth in Andhra Pradesh is anticipated to mitigate this impact for USL.

As of 11:24 am, USL shares were trading 2.56% higher at ₹1,485.75 on the NSE.

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