United Spirits (UNITDSPR)

FairStock Score: 60/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear two hats: Buffett's quality lens and Graham's margin-of-safety lens. United Spirits shows a business with real financial strength: ROE 21.22%, ROCE 26.50%, debt/equity just 0.05, free cash flow ₹833 Cr, Piotroski F-Score 8/9 and Altman Z-Score 6.75. The latest quarter delivered ₹3,694 Cr sales and ₹418 Cr net profit, while profit growth of 51.55% is striking. Promoter holding is 56.68%, and the FairStock score is 60/100, tagged STEADY. That suggests a stalwart-like franchise, not a fragile turnaround. But the price is the problem. At ₹1,536 and market cap ₹1.09 lakh Cr, it trades at P/E 64.51, P/B 12.18 and PEG 5.30. Book value is only ₹126.09, so P/B is rich. Graham Number is ₹243.49 and DCF intrinsic value is ₹241.64—both far below the market price, giving a margin of safety of -467.08%. I don't need more to see that optimism is fully priced. Sales growth is 7.66% and five-year revenue CAGR is 5.29%, so this is not a fast grower. Dividend yield is just 1.11%. EV/EBITDA of -20.62 is unusual and merits caution, though I would not rely on one ratio alone. For an Indian retail investor, the business quality is attractive; the entry price is not. A wonderful company can be a poor investment if bought at a reckless valuation. I would watch whether profit growth sustains and whether sales accelerate enough to justify P/E and PEG. Until price moves closer to intrinsic value or earnings catch up, I prefer patience over paying up. The 52-week range ₹1,210.80–₹1,557.50 shows the market already near the high end.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer