United Spirits shares fell over seven percent on Wednesday, a day after the alcoholic beverages company reported a 204 percent year-on-year jump on strong consumer demand in the first quarter ended June.
But inflation ate sharply into the liquor marker's margin. The firm reported a 366 bsis point dip in gross margin.
The stock was trading at Rs 801 per share, down 5.8 percent, on the BSE at the time of writing. The stock touched a 52-week high of Rs 1,019.75 on November 9, 2021, and a 52-week low of Rs 629.35 on July 28, 2021.
Market expert Mitessh Thakkar of
earningwaves.com told CNBCTV18 that investors could buy United Spirits for a target of Rs 885 with a stop loss at Rs 848.
On Tuesday, the company reported a 34.3 percent year-on-year rise in its revenue from operations at Rs 2,169.3 crore. At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 63.5 percent to Rs 274.2 crore in the June quarter of FY23 and EBITDA margin stood at 12.6 percent.
The Diageo-controlled liquor maker also reported a 12.9 percent increase in the company's total expenses. The company registered a 34.3 percent rise in net sales.
