Target: ₹887
CMP: ₹739.15
United Spirits Ltd. (USL) is India’s biggest alcoholic beverage (alcobev) company. Its operations span from manufacturing Indian Made Foreign Liquor (IMFL) across all price points, from the Popular segment to Prestige and Above (P&A) division. It also imports and distributes Diageo’s (parent of USL) brands as Bottled in India (BII) and Bottle in Origin (BIO) categories that form part of the P&A segment.
Both BIO and BII, together, have a share of about 20-25 per cent in the company’s business and form part of the P&A category.
Owing to the trend of premiumisation, the company exited a major chunk of the declining Popular segment market by way of a slump sale and franchise agreement. During 9M FY23, the company exited about 45 per cent of Popular Net Sales Value (NSV) via slump sale and franchise agreement as a result, the P&A segment gained about 8 per cent value share and ~17 per cent volume.
Consequently, P&A represented 88 per cent NSV and 79 per cent volume for the concurrent period. Apart from these initiatives, the Company has been renovating