It is unknown at the moment as United Spirits last declared a dividend in 2013. It had been declaring dividends every year since 2002 up until 2013.
United Spirits missed its EBITDA targets by 23% due to higher material cost, ad spend, and operating deleverage from the sale of 32 brands. Analysts remain neutral on buying due to ongoing input cost pressures and expected continued deleveraging effects for around 12 months.
In the period between 10th May, 2022 and 10th May, 2023, the share price of United Spirits has shown a negative growth of 1%. Motilal Oswal revised its target of Rs. 880 in December 2022 to Rs. 835 in late-January 2023. It is currently trading at Rs. 792.50 as of May 10, 2023, well below its 52-week high of Rs. 951.80, and closer to its 52-week low of Rs. 712.
United Spirits manages risk through a balanced approach. It maintains a strong balance sheet with cash reserves to offset its debt. The company's debt management capabilities are strengthened by a 20% year-on-year growth in EBIT.
United Spirits anticipates benefiting from the cancellation of a rival's license in Delhi and a liquor price hike in Telangana, which is expected to improve their margins. Although cost pressures are likely to persist, the share price of United Spirits is expected to remain bearish in the near-term.
The 1-year return on equity for United Spirits as of 16th May, 2023, is -2.6%.