NSEI:MCDOWELL-N

Stock Analysis Report

Executive Summary

United Spirits Limited manufactures, purchases, and sells alcoholic beverages in India and internationally.


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-NIndustryMarket
7 Day4.3%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 Year14.2%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

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

NamePositionTenureCompensationOwnership
Anand Kripalu
MD, CEO & Additional Director5.83yrs₹153.05mno data
Sanjeev Churiwala
CFO & Executive Director2.92yrs₹52.95mno data
Subroto Geed
Executive VP & COOno datano datano data
Venkatesan Ramachandran
Executive VP4.83yrs₹16.90m0.000010% 32.2k
Mamta Sundara
Executive VP & General Counselno datano datano data
Mathew Xavier
Executive VP & COO of Southno datano datano data
Amrit Thomas
Chief Marketing Officer7.92yrsno datano data
Lal Rangwani
VP & Head of Sales- Westno datano data0.00026% 837.4k
Kedar Ulman
Chief Supply Chain Officerno datano datano data
Vineet Kapila
Global Head Main Stream Spiritsno datano datano 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

NamePositionTenureCompensationOwnership
Anand Kripalu
MD, CEO & Additional Director5.83yrs₹153.05mno data
Sanjeev Churiwala
CFO & Executive Director2.92yrs₹52.95mno data
Mahendra Sharma
Independent Non-Executive Chairman4yrs₹5.50mno data
Vegulaparanan Viswanathan
Independent Non-Executive Director3.42yrs₹4.75mno data
John Kennedy
Non-Executive Nominee Director3.58yrsno datano data
Dhanushkodi Sivanandhan
Independent Non-Executive Director6.67yrs₹4.78mno data
Rajeev Gupta
Independent Non-Executive Director5.25yrs₹4.10mno data
Vinod Rao
Non-Executive Nominee Director3.83yrsno datano data
Indu Shahani
Independent Non-Executive Director5.5yrs₹4.90mno data
Randall Ingber
Non-Executive Nominee Director3yrsno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532432BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2001
MCDOWELL-NNSEI (National Stock Exchange of India)YesEquity SharesININRSep 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 13:07
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.