A gradual improvement in margins could delay gains for United Spirits

Most analysts are positive on the popular segment sale and premiumisation focus

Announcement of the long awaited sale of entry level or popular segment of brands by United Spirits is viewed positively by the brokerages. This coupled with progress on the premiumisation trend, higher revenue growth trajectory and improved margins are the key triggers for the stock of the country’s largest liquor maker.

The company recently sold 32 popular brands by way of a slump sale for Rs 828 crore. The sold brands contributed Rs 768 crore to the company’s topline and accounted for 8 per cent of overall sales for FY22. The sales consideration values the deal at 7 times its