Neutral United Spirits, target Rs 629: Nomura, India

Nomura, India has a neutral call on United Spirits Ltd. with a target price of Rs 629.0 . The current market price of United Spirits Ltd. is Rs 666.55 Time period given by analyst is year when United Spirits Ltd. price can reach defined target. United Spirits Ltd., incorporated in the year 1999, is a largeccap company with a market cap of Rs 47809.19 crore.

Investment rationale by Nomura
Following UNSP’s 1:5 stock split, we adjust our target price by the same ratio. The split is effective 15 June, 2018. Our valuation methodology remains unchanged and our target price of INR629 is based on DCF with an 11% discount rate and terminal growth of 5%. ITC (ITC IN, Buy) and Dabur (DABUR IN, Buy) remain our key ideas in the consumer space. EPS estimates adjusted by similar proportion for stock split To adjust for the 1:5 split, our per share metrics are one-fifth of their previous values. There is no change to our revenue/margin/net profit estimates.