United Spirits stock dips despite revenue surge, net profit fall

Shares of United Spirits Ltd. experienced a downturn in the Indian stock market today, despite the company’s significant revenue growth in the recent quarter. The stock opened at Rs 1,074.7 (Rs 1 = $0.012) but fell by 1.43% around midday IST, with approximately 9,780 shares changing hands at prices ranging from Rs 1,048.85 to Rs 1,074.7. This decline occurred even as the company’s market capitalization was noted at Rs 76,393.66 crore (Rs 1 crore = $119,921).

The latest quarterly figures showed a substantial revenue increase of 132.19%, reaching Rs 6,776.6 crore from the previous quarter. However, this financial gain was overshadowed by a notable year-over-year drop in net profit by 38.65%, down to Rs 339.3 crore, despite sales rising by 16.23%.

Investor composition in United Spirits revealed that Domestic Institutional Investors (DIIs) held 9.96% of ownership, Foreign Institutional Investors (FIIs) owned 16.51%, and promoters retained a majority stake of 56.67%. The stock’s Price-to-Earnings (P/E) ratio stood at a lofty 67.43, coupled with a price-to-book ratio of 9.17, indicating that investors are pricing in the company’s future growth prospects.

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