United Spirits share price plunges 7%; brokerages express mixed views post Q2 result
United Spirits share price plunged almost 7 per cent in morning trade on BSE on Friday, November 10, as investors offloaded shares of the company in the wake of its September quarter earnings which showed a significant year-on-year (YoY) fall in standalone revenue and profit. In an exchange filing on Wednesday, November 8, United Spirits said its standalone revenue from operations dropped almost 19 per cent YoY to ₹6,733.8 crore. In the same quarter last year, the company's revenue from operations was at ₹8,275.9 crore.
The company's standalone profit for the period fell 37 per cent YoY to come at ₹341.3 crore against ₹542.3 crore in the same quarter last year. Following the company's Q2 earnings, the stock ended 0.29 per cent lower at ₹1,096.50 on November 9. On Friday, November 10, United Spirits share price opened at ₹1,094.70 against the previous close of ₹1,096.50 and fell 6.62 per cent to the intraday low of ₹1,023.95.
(Exciting news! Mint is now on WhatsApp Channels. Subscribe today and stay updated with the latest financial insights! Click here!) Kotak Institutional Equities has an add call on the stock with a target price of ₹1,075. "We trim FY2024-26 revenue/EPS estimates by 1-2 per cent.
Our estimates factor in some benefits of the impending UK FTA. We roll over and revise fair value to ₹1,075 ( ₹110 for the IPL team and ₹965 at 46 times (unchanged) Dec-25E PE for the alcohol beverages segment)," said Kotak. Brokerage firm Motilal Oswal Financial Serviceshas a neutral view on the stock with a target price of ₹1,050.
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