Nomura Initiates Buy Rating on United Spirits Citing Premiumisation and Growth Potential

Nomura has initiated coverage on United Spirits with a Buy rating and a target price of Rs 1,650, citing a developing upcycle driven by premiumisation, regulatory easing, and innovation. The brokerage highlights a shift in consumer preferences towards premium and prestige brands, which now constitute 90% of United Spirits' portfolio. Despite some near-term challenges like duty hikes in Maharashtra, Nomura expects margin expansion, healthy earnings growth, and valuation support amid evolving industry dynamics and increased demand for higher-margin categories such as white spirits.