United Spirits
Market Cap
₹322.1b
Last Updated
2020/03/30 13:07 UTC
Data Sources
Company Financials +
Executive Summary
United Spirits Limited manufactures, purchases, and sells alcoholic beverages in India and internationally.
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with solid track record.
Similar Companies
Share Price & News
How has United Spirits's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MCDOWELL-N's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.3%
MCDOWELL-N
4.2%
IN Beverage
8.9%
IN Market
1 Year Return
-14.9%
MCDOWELL-N
-24.3%
IN Beverage
-30.6%
IN Market
Return vs Industry: MCDOWELL-N exceeded the Indian Beverage industry which returned -22.6% over the past year.
Return vs Market: MCDOWELL-N exceeded the Indian Market which returned -29.3% over the past year.
Shareholder returns
| MCDOWELL-N | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.3% | 4.2% | 8.9% |
| 30 Day | -31.9% | -31.1% | -24.8% |
| 90 Day | -22.1% | -25.0% | -29.4% |
| 1 Year | -14.9%-14.9% | -24.2%-24.3% | -29.2%-30.6% |
| 3 Year | 14.2%14.2% | 26.6%26.1% | -17.0%-21.5% |
| 5 Year | -36.6%-36.6% | -23.3%-23.5% | -5.4%-10.4% |
Price Volatility Vs. Market
How volatile is United Spirits's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
A Sliding Share Price Has Us Looking At United Spirits Limited's (NSE:MCDOWELL-N) P/E Ratio2 weeks ago | Simply Wall St
Could The United Spirits Limited (NSE:MCDOWELL-N) Ownership Structure Tell Us Something Useful?1 month ago | Simply Wall St
Does United Spirits Limited's (NSE:MCDOWELL-N) CEO Salary Reflect Performance?Valuation
Is United Spirits undervalued compared to its fair value and its price relative to the market?
45.81x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MCDOWELL-N (₹467.3) is trading above our estimate of fair value (₹223.66)
Significantly Below Fair Value: MCDOWELL-N is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MCDOWELL-N is poor value based on its PE Ratio (45.8x) compared to the Beverage industry average (7.9x).
PE vs Market: MCDOWELL-N is poor value based on its PE Ratio (45.8x) compared to the Indian market (9.2x).
Price to Earnings Growth Ratio
PEG Ratio: MCDOWELL-N is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: MCDOWELL-N is overvalued based on its PB Ratio (9.7x) compared to the IN Beverage industry average (0.9x).
Next Steps
Future Growth
How is United Spirits forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
20.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCDOWELL-N's forecast earnings growth (20.7% per year) is above the savings rate (6.5%).
Earnings vs Market: MCDOWELL-N's earnings (20.7% per year) are forecast to grow faster than the Indian market (19.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MCDOWELL-N's revenue (9.2% per year) is forecast to grow faster than the Indian market (8.9% per year).
High Growth Revenue: MCDOWELL-N's revenue (9.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MCDOWELL-N's Return on Equity is forecast to be high in 3 years time (23.7%)
Next Steps
Past Performance
How has United Spirits performed over the past 5 years?
61.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCDOWELL-N has high quality earnings.
Growing Profit Margin: MCDOWELL-N's current net profit margins (7.5%) are higher than last year (7.5%).
Past Earnings Growth Analysis
Earnings Trend: MCDOWELL-N has become profitable over the past 5 years, growing earnings by 61.2% per year.
Accelerating Growth: MCDOWELL-N's earnings growth over the past year (5.8%) is below its 5-year average (61.2% per year).
Earnings vs Industry: MCDOWELL-N earnings growth over the past year (5.8%) exceeded the Beverage industry -5.9%.
Return on Equity
High ROE: MCDOWELL-N's Return on Equity (20.2%) is considered high.
Next Steps
Financial Health
How is United Spirits's financial position?
Financial Position Analysis
Short Term Liabilities: MCDOWELL-N's short term assets (₹54.7B) exceed its short term liabilities (₹50.4B).
Long Term Liabilities: MCDOWELL-N's short term assets (₹54.7B) exceed its long term liabilities (₹9.6B).
Debt to Equity History and Analysis
Debt Level: MCDOWELL-N's debt to equity ratio (77.4%) is considered high.
Reducing Debt: MCDOWELL-N's debt to equity ratio has reduced from 467.4% to 77.4% over the past 5 years.
Balance Sheet
Inventory Level: MCDOWELL-N has a high level of physical assets or inventory.
Debt Coverage by Assets: MCDOWELL-N's debt is covered by short term assets (assets are 2.1x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: MCDOWELL-N is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: MCDOWELL-N is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is United Spirits's current dividend yield, its reliability and sustainability?
0.34%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MCDOWELL-N's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate MCDOWELL-N's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if MCDOWELL-N's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MCDOWELL-N's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: MCDOWELL-N is not paying a notable dividend for the Indian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MCDOWELL-N's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Anand Kripalu (60yo)
5.83s
Tenure
₹153,051,005
Compensation
Mr. Anand Kripalu serves as Managing Director and CEO of Managing Director and CEO, Diageo India. Mr. Kripalu served as the Chief Executive Officer and Managing Director at United Spirits Limited since Sep ...
CEO Compensation Analysis
Compensation vs Market: Anand's total compensation ($USD2.03M) is above average for companies of similar size in the Indian market ($USD740.60K).
Compensation vs Earnings: Anand's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Additional Director | 5.83yrs | ₹153.05m | no data | |
| CFO & Executive Director | 2.92yrs | ₹52.95m | no data | |
| Executive VP & COO | no data | no data | no data | |
| Executive VP | 4.83yrs | ₹16.90m | 0.000010% ₹32.2k | |
| Executive VP & General Counsel | no data | no data | no data | |
| Executive VP & COO of South | no data | no data | no data | |
| Chief Marketing Officer | 7.92yrs | no data | no data | |
| VP & Head of Sales- West | no data | no data | 0.00026% ₹837.4k | |
| Chief Supply Chain Officer | no data | no data | no data | |
| Global Head Main Stream Spirits | no data | no data | no data |
5.3yrs
Average Tenure
53yo
Average Age
Experienced Management: MCDOWELL-N's management team is seasoned and experienced (5.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Additional Director | 5.83yrs | ₹153.05m | no data | |
| CFO & Executive Director | 2.92yrs | ₹52.95m | no data | |
| Independent Non-Executive Chairman | 4yrs | ₹5.50m | no data | |
| Independent Non-Executive Director | 3.42yrs | ₹4.75m | no data | |
| Non-Executive Nominee Director | 3.58yrs | no data | no data | |
| Independent Non-Executive Director | 6.67yrs | ₹4.78m | no data | |
| Independent Non-Executive Director | 5.25yrs | ₹4.10m | no data | |
| Non-Executive Nominee Director | 3.83yrs | no data | no data | |
| Independent Non-Executive Director | 5.5yrs | ₹4.90m | no data | |
| Non-Executive Nominee Director | 3yrs | no data | no data |
3.9yrs
Average Tenure
61yo
Average Age
Experienced Board: MCDOWELL-N's board of directors are considered experienced (3.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
United Spirits Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: United Spirits Limited
- Ticker: MCDOWELL-N
- Exchange: NSEI
- Founded: 1826
- Industry: Distillers and Vintners
- Sector: Food, Beverage & Tobacco
- Market Cap: ₹322.091b
- Shares outstanding: 684.72m
- Website: https://www.diageoindia.com
Location
- United Spirits Limited
- UB Tower
- No. 24, Vittal Mallya Road
- Bengaluru
- Karnataka
- 560001
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 532432 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Sep 2001 |
| MCDOWELL-N | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Sep 2001 |
Biography
United Spirits Limited manufactures, purchases, and sells alcoholic beverages in India and internationally. Its alcoholic beverages include Scotch whisky, Indian made foreign liquor whisky, brandy, rum, vodka, gin, and wine. The company primarily owns McDowell’s No.1, Royal Challenge, Signature, Antiquity, Black Dog, Director’s Special Black, McDowell’s Rum, McDowell’s Brandy, Bagpiper, Old Tavern, and Haywards brands. It also manufactures, imports, and sells Diageo’s iconic brands, such as Haig Gold Label, Captain Morgan, Johnnie Walker, J&B, Baileys, Lagavulin, Talisker, VAT 69, Black & White, Smirnoff, and Ciroc. In addition, the company holds the right to the Bangalore Franchise of the Board of Control for Cricket in India – Indian Premier League. It also exports its products. The company was formerly known as McDowell & Company Limited and changed its name to United Spirits Limited in October 2006. United Spirits Limited was founded in 1826 and is headquartered in Bengaluru, India. United Spirits Limited operates as a subsidiary of Diageo plc.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 13:07 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.