Case Study 3 : #UnitedSpirits / #DiageoIndia 🍻
CMP – 629.25 (4/6/2021)

(Must read Thread 🧵for #TA & #FA learners)

Fundamentals Sound & Technically Breakout Soon Candidate !

#TechnoFundaInvesting

@dmuthuk hope you like our detailed analysis🙏

@caniravkaria
@rohanshah619

1⃣United Spirits Limited, abbreviated to #USL (Diageo India) is an Indian alcoholic beverages company, and the world's second-largest spirits company by volume.

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing
2⃣Company has a comprehensive brand portfolio with over about 80 brands of Scotch whisky, IMFL whisky, brandy, rum, vodka and gin.

11 of these brands sell more than a million cases annually.

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing
3⃣Company’s popular brands include - Johnnie Walker, Black Dog, Black & White, Vat 69, Antiquity, Signature, Royal Challenge, McDowell’s No. 1, Smirnoff and Captain Morgan.

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing
4⃣🌟Few Fundamental Positives🌟

✅Company Market Cap – 45,723.74 Cr
✅TTM EPS – 5.28
✅TTM P/E – 119.20
✅Industry Average P/E – 113.63
✅Book Value – Rs. 56.20.
✅Promoter Holding Pledge – 1.19% (Reduced from 3.22% in 9 quarters)
5⃣✅Diageo India's debt in FY14 was Rs.8307 crores which as of FY21, it is just Rs. 556 crores.

✅Company likely to be debt free by this H1.
6⃣Anand Kripalu - present MD & CEO cleaned the company thoroughly, making it debt free and successfully changed the product mix.

(Will step down effective 30 June 2021)

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing
7⃣Diageo India's 3 year profit CAGR is 26%, 5 years 21%

Sales remained flat but with Hina Nagarajan, an aggressive growth person taking over as MD & CEO from 1 July 2021 one can expect good growth in coming years

#UnitedSpirits #DiageoIndia #StockMarket #TechnoFunda #Investing
8⃣Total Equity - 72.66 Cr Shares

Public Share Holding around 14.66% i.e., ~10 Cr shares.

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing
9⃣ Most of the Mutual Fund Houses have increased their holding in the counter in April 2021.

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing
🔟🌟Technical Analysis🌟

Specially for @dmuthuk

Have analyzed chart on daily & monthly time frame

On daily chart there is a strong resistance around 645 – 670 levels. If this resistance is broken then surely stock can go to 740 soon.

#UnitedSpirits #DiageoIndia #StockMarket
1⃣1⃣On monthly chart, #ascendingtriangle is being formed which can give #breakout around 730 – 740 levels.

On breakout stock can go towards levels of around 1370 + in 18 – 24 months.

Technically, for investment one should place a stop loss around 400 - 410

@caniravkaria
1⃣2⃣ Would like to conclude with a few tweets of @dmuthuk sir himself -

✅China's largest spirit maker is valued at $300 billion. Diageo, a well respected global company, largest spirit maker in India is valued at $5 billion.

#UnitedSpirits #USL #TechnoFunda #Investing
1⃣3⃣

@dmuthuk adds -
In my view, Diageo India would be a huge wealth creator in the next two decades.

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing
1⃣4⃣

@dmuthuk sir adds -

✅Diageo India is just a $5 billion market cap company. I think many have no clue how big this can be in another 10 to 20 years.

✅Globally, Diageo stands for ethics and integrity; very much important especially for liquor industry.

#TechnoFunda
Disclaimer : This is not a stock recommendation on #UnitedSpirits. Just a case study for educational purpose explaining how #TechnoFunda Investing works.

Consult your Financial Advisor before Investing !

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing

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