Near term demand triggers lacking for liquor major United Spirits

Long-term prospects promising, but there are no immediate triggers

The stock of United Spirits, the country’s largest liquor company by market capitalisation (mcap), has gained 11 per cent over the past week on double-digit growth guidance, rising premiumisation trend, operationally in-line performance in the March (Q4FY24) quarter and a rally in consumer stocks. 

The revenue growth of the company came in at 7 per cent year-on-year (Y-o-Y) mirroring the growth of the prestige and above (P&A) segment. This segment comprising premium brands accounts for 88 per cent of the revenues. The popular segment saw a revenue growth of 3.7 per cent on volumes of 4 per cent. 

The ongoing