Jan 20 (Reuters) - India's United Spirits, which sells Johnnie Walker whiskey and Tanqueray gin, reported a rise in quarterly profit on Tuesday, aided by broadly steady demand for its premium liquor.
The Indian unit of Diageo posted a 12% gain in profit to 5.29 billion rupees ($58.14 million) for the third quarter ended December 31, compared to the previous year.
Revenue from operations rose 3% to 79.28 billion rupees.
For more earnings highlights, click here. (FULL STORY)
KEY CONTEXT
India's growing affluent consumer base continues to splurge on a wide range of luxury items, from premium liquor to jewellery and residential apartments.
Their spending habits have lifted sales of several companies, including jewellery retailers such as Titan, Kalyan Jewellers and Senco Gold, even as lower-income consumers are stretched thin.
Net sales in United Spirits' "prestige & above" segment grew 8.2%, while its "popular" business, which sells cheaper liquor, declined 4.6%.
PEER COMPARISON
Valuation (next 12 Estimates Analyst
months) (next 12 s'
months) sentime
nt
RIC PE EV/EBI Price/ Revenue Profit Mean # of Stock to Div
TDA Sales growth (%) growth rating* analyst price yield
(%) s target** (%)
United Spirits Ltd UNSP.NS 49.28 35.05 NULL -11.36 12.21 BUY 10 0.82 0.91
Radico Khaitan Ltd RADC.NS 53.82 34.40 NULL 15.92 36.98 BUY 9 0.81 0.14
Tilaknagar Industries Ltd TILK.NS 35.88 29.08 NULL 15.70 -2.93 STRONG 1 0.73 0.24
BUY
United Breweries Ltd UBBW.NS 54.41 32.96 NULL 11.41 42.12 HOLD 11 0.81 0.66
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
SEPTEMBER TO DECEMBER STOCK PERFORMANCE
-- All data from LSEG
($1 = 90.9810 Indian rupees)
(Reporting by Komal Salecha in Bengaluru and Praveen Paramasivam in Chennai; Editing by Ronojoy Mazumdar and Vijay Kishore)
