United Spirits, a breweries and distilleries company, manufactures renowned liquor brands like Johnnie Walker, Black Dog and McDowell's No 1 among others, and is an attractive pick for 2025. Brokerage ICICI Direct has selected the stock with the recommendation of BUY for a target price of Rs 1,820 with a timeframe of 12 months. The brokerage highlighted that United Spirit has been gaining momentum after a multi-year consolidation.
United Spirits Share Price:
Currently, the stock price is at Rs 1570.50 apiece, with a market cap of Rs 1,14,230.45 crore. The stock's 52-week high and low is at Rs 1,648.40 apiece and Rs 1,048.25 apiece respectively. Its price-to-equity ratio is at 83.62x, while the return on equity is at 18.85%.
YTD, the stock has surged by 42%, while in a year, the upside is about 45%. The all-time gains by United Spirits is about 23,804.11%. Once upon a time, the stock traded at Rs 6.57 apiece level on September 28, 2001.
United Spirits Technical Analysis:
As per ICICI Direct's 2025 outlook report, UNITED SPIRIT has been marching northward after recording a breakout from multiyear consolidation. Consequently, the stock has broken out of the ratio line chart against Nifty, indicating relative outperformance amidst the recent volatile scenario.
The key point of highlight by the brokerage is that since May 2023, United Spirits witnessed buying demand on multiple occasions from rising 20-weeks EMA, which is acting as a strong support level and signalling continued bullish strength.
Structurally, over the past 10 weeks it retraced 61.8% of preceding 10 weeks rally (1264-1648). The slower pace of retracement signifies inherent strength, it added.
That being said, ICICI Direct expects United Spirits to head towards Rs 1820 being the price parity of the July-September rally(1263-1647). The timeframe is 12 months.
United Spirits, which is abbreviated to USL, is the world's second-largest spirits company by volume. A subsidiary of Diageo, USL is an Indian alcohol company with its exports spanning to over 37 countries.
Diageo India is among India's leading beverage alcohol (alcobev) companies with an outstanding portfolio of premium brands. A subsidiary of Diageo Plc., it is listed in India on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) as United Spirits Limited (USL).
, Diageo India has one of the largest manufacturing footprints in alcobev with 36 facilities across India. It manufactures, sells and distributes Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, The Singleton, Royal Challenge, McDowell's No1, Smirnoff, Ketel One, Tanqueray, Captain Morgan and Godawan, an artisanal single malt whisky from India, bringing together global expertise and local pride to deliver innovative, world-class products and experiences to consumers.
Notably, United Breweries has carried one stock split and two dividends in the past six years. The two dividends were paid back-to-back in 2023 and 2024 after it split for the first time.
Dividends: The company has delivered up to 15 dividends since September 2002, as per Trendlyne data. Notably, in 2024, the company paid a final dividend of Rs 5 per share for FY24, while the interim dividend was paid in 2023 at Rs 4 per share for the same fiscal. The two dividend payouts come after a nearly 6-year gap. Prior to this, the company's dividend payout was of Rs 2.50 per share in September 2013.
Stock Split: Also, needs to be noted that United Spirits first stock split comes during June 2018, in the ratio of 1:2 where its face value of Rs 10 each is split to Rs 2 each.
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