Sell United Spirits, target price Rs 590: Chandan Taparia

Chandan Taparia of Motilal Oswal Securities has a sell call on United Spirits with a target price of Rs 590. The current market price of United Spirits is Rs 620.4. Chandan Taparia recommended to keep a stop loss at Rs 630.

United Spirits key products/revenue segments include beverages (alcohol) which contributed Rs 25,871.50 crore to sales value (99.24 per cent of total sales), income from franchise which contributed Rs 154.40 crore to sales value (0.59 per cent of total sales), scrap which contributed Rs 31.90 crore to sales value (0.12 per cent of total sales) and other operating revenue which contributed Rs 11.30 crore to sales value (0.04 per cent of total sales) for the year ending 31 March, 2018.

For the quarter ended 30-06-2019, the company has reported a onsolidated sales of Rs 2,433.10 crore, up 4.99 per cent from last quarter sales of Rs 2,317.50 crore and up 7.15 per cent from last year same quarter sales of Rs 2,270.70 crore. The company has reported a net profit after tax of Rs 182.30 crore in latest quarter. The company’s top management includes Indu Shahani, Anand Kripalu, D Sivanandhan, John Thomas Kennedy, Mahendra Kumar Sharma, Rajeev Gupta, Randall David Ingber, Sanjeev Churiwala, V K Viswanathan and Vinod Rao. The company has Price Waterhouse & Co Chartered Accountants LLP as its auditor. As on 30-06-2019, the company has a total of 726,638,715 shares outstanding.