United Spirits

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by Sagar shah, Apr 17, 2017.

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Is liquor Industry has bright future going forward?

Poll closed Apr 24, 2017.
  1. Yes

    0 vote(s)
    0.0%
  2. No

    66.7%
  3. No view

    33.3%
  1. Sagar shah

    Sagar shah New Member

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    Investment Rationale:

    • United Spirits is leading player in Indian Spirits Industry.
    • India has Young population and number of youth which coming into legal drinking Age and favorable demographics leads to Key advantage for the USL.
    • Company has started Backward Integration to make Glass Bottles in order to reduction of cost which gives Positive impact on Profit Margin.
    • Company has diversified its product portfolio in four segments which is Luxury , Premium , Prestige and Popular it means it caters to all Income Level Group.
    • Alcohol continuous to be one of the most regulated sectors in industry. When there is hike in Excise duty or indirect taxes, it can pass the increased cost to consumers which enables because of Durable Competitive Advantage.
    • San Diego has taken control at USL which gives strength of combined Diageo and USL portfolio of iconic brands which helps to make Position in India and explore the biggest growth opportunities in Industry.
    • San Diego has brought various brands like Johnnie Walker, Smirnoff , Captain Morgan, Guinness , Gold Label , Blue Label , Ketel One vodkas , Ciroc which is very difficult for competitors to make Brand and Product like San Diego which gives Moat Advantage to USL.
     
    Srouta Mukherjee likes this.
  2. w4wealth

    w4wealth Well-Known Member

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    liquor ban is serious issue for alcohol companies.
     
    Sagar shah and Srouta Mukherjee like this.
  3. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    It is looking like serious issue is there because many state are banning liquor. If ban is removed then stock will shoot up.
     
  4. w4wealth

    w4wealth Well-Known Member

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    ban may not b removed in near future
     
  5. Sagar shah

    Sagar shah New Member

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    histroy says, liquor banned has removed within 2 years from any states except Gujarat.
     
  6. Sagar shah

    Sagar shah New Member

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    Yes
     
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