United Spirits share price fell nearly 4% today after the firm reported a of 57.82 per cent fall in its consolidated net profit for the fourth quarter ended March 2020. Share price of United Spirits declined up to 3.55% to Rs 557.30 compared to the previous close of Rs 577.80 on BSE. The stock opened with a loss of 2.86% at Rs 561.25 on BSE.
The stock is trading higher than 20 day and 50 day moving averages but lower than 5 day, 100 day and 200 day moving averages.
United Spirits stock has gained 3.23% in last one year and fallen 6.48% since the beginning of this year. Market cap of the firm fell to Rs 40,811 crore.
The stock hit its 52 week high of Rs 742.95 on February 20, this year and 52 week low of Rs 443 on March 25, 2020.
On NSE, the share fell 3.66 per cent to Rs 557. The firm reported a Rs 49.3 crore consolidated net profit for the fourth quarter ended March 2020, mainly impacted by disruptions in the market and consumption slowdown on account of COVID-19. It posted net profit of Rs 116.9 crore in the January-March quarter a year ago.
Revenue from operations fell 11.86 per cent to Rs 6,419 crore during the quarter under review against Rs 7,283.1 crore in the corresponding period previous fiscal.
UBS gave a sell call for the stock with a target price of Rs 480. The brokerage said the firm faces multiple near term and medium term uncertainties. Increase in taxes is likely to impact consumer sentiment.
However, Credit Suisse is upbeat on the stock despite weak Q4 earnings. The brokerage said there was a large hit to prestige volumes but aggressive cost controls helped maintain margins. Net debt reduction is in the process despite a spike in working capital in March. However, first half of FY 21 is likely to remain very weak, said the brokerage and gave a target price of Rs 620.
By Aseem Thapliyal