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Market Cap

₹362.0b

Last Updated

2021/04/19 12:38 UTC

Data Sources

Company Financials +

Executive Summary

United Spirits Limited manufactures, purchases, and sells alcoholic beverages and other allied spirits in India and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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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 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MCDOWELL-N's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

MCDOWELL-N

-1.9%

IN Beverage

-2.2%

IN Market


1 Year Return

-1.8%

MCDOWELL-N

21.4%

IN Beverage

71.1%

IN Market

Return vs Industry: MCDOWELL-N underperformed the Indian Beverage industry which returned 21.4% over the past year.

Return vs Market: MCDOWELL-N underperformed the Indian Market which returned 71.1% over the past year.


Shareholder returns

MCDOWELL-NIndustryMarket
7 Day0.4%-1.9%-2.2%
30 Day-3.4%-3.8%0.4%
90 Day-17.6%-7.8%7.1%
1 Year-1.8%-1.8%21.6%21.4%73.7%71.1%
3 Year-25.8%-25.8%2.9%2.5%28.0%20.4%
5 Year6.2%6.2%28.6%28.1%87.2%71.5%

Long-Term 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?

157.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MCDOWELL-N (₹517.95) is trading above our estimate of fair value (₹154.29)

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 (157.3x) compared to the IN Beverage industry average (30.5x).

PE vs Market: MCDOWELL-N is poor value based on its PE Ratio (157.3x) compared to the Indian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MCDOWELL-N is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: MCDOWELL-N is overvalued based on its PB Ratio (10.2x) compared to the IN Beverage industry average (1.8x).


Future Growth

How is United Spirits forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

53.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCDOWELL-N's forecast earnings growth (53.6% per year) is above the savings rate (7%).

Earnings vs Market: MCDOWELL-N's earnings (53.6% per year) are forecast to grow faster than the Indian market (23.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MCDOWELL-N's revenue (14.8% per year) is forecast to grow faster than the Indian market (14% per year).

High Growth Revenue: MCDOWELL-N's revenue (14.8% 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 low in 3 years time (19.9%).


Past Performance

How has United Spirits performed over the past 5 years?

9.4%

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 (3%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: MCDOWELL-N has become profitable over the past 5 years, growing earnings by 9.4% per year.

Accelerating Growth: MCDOWELL-N's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MCDOWELL-N had negative earnings growth (-67.7%) over the past year, making it difficult to compare to the Beverage industry average (-15.2%).


Return on Equity

High ROE: MCDOWELL-N's Return on Equity (5.8%) is considered low.


Financial Health

How is United Spirits's financial position?


Financial Position Analysis

Short Term Liabilities: MCDOWELL-N's short term assets (₹50.9B) do not cover its short term liabilities (₹52.5B).

Long Term Liabilities: MCDOWELL-N's short term assets (₹50.9B) exceed its long term liabilities (₹1.6B).


Debt to Equity History and Analysis

Debt Level: MCDOWELL-N's debt to equity ratio (50.1%) is considered high.

Reducing Debt: MCDOWELL-N's debt to equity ratio has reduced from 314.8% to 50.1% over the past 5 years.

Debt Coverage: MCDOWELL-N's debt is well covered by operating cash flow (79.7%).

Interest Coverage: MCDOWELL-N's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Dividend

What is United Spirits's current dividend yield, its reliability and sustainability?

0.057%

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 recent 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 recent 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?

5.9yrs

Average management tenure


CEO

Anand Kripalu (61 yo)

6.92yrs

Tenure

₹229,205,416

Compensation

Mr. Anand Kripalu Serves as Managing Director and Chief Executive Officer of Diageo India Private Limited. He is Chairman of Royal Challengers Sports Private Limited since October 01, 2020. Mr. Kripalu ser...


CEO Compensation Analysis

Compensation vs Market: Anand's total compensation ($USD3.08M) is above average for companies of similar size in the Indian market ($USD804.58K).

Compensation vs Earnings: Anand's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: MCDOWELL-N's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: MCDOWELL-N's board of directors are considered experienced (5.2 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.


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: ₹361.978b
  • Shares outstanding: 709.34m
  • Website: https://www.diageoindia.com

Number of Employees


Location

  • United Spirits Limited
  • UB Tower
  • No. 24, Vittal Mallya Road
  • Bengaluru
  • Karnataka
  • 560001
  • India

Listings


Biography

United Spirits Limited manufactures, purchases, and sells alcoholic beverages and other allied spirits in India and internationally. Its alcoholic beverages include Scotch whisky, Indian made foreign liquo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/19 12:38
End of Day Share Price2021/04/19 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.