United Spirits is Anil Singhvi's wealth creation stock pick — check out his target price

Anil Singhvi wealth creation pick: Zee Business Managing Editor Anil Singhvi recommends buying United Spirits (USL) shares. He expects the company to benefit from the growing liquor market in India. What about the market guru's target price for the stock? Well, here's a hint. it's nearly double of the current market price.

What Anil Singhvi recommends on United Spirits (USL) shares

Anil Singhvi recommends buying United Spirits shares for targets of Rs 1,000, Rs 1,250 and Rs 1,500 from a perspective of 1-3 years. His highest target implies upside potential of about 95 per cent in USL shares.

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Why makes Anil Singhvi like USL shares

Singhvi mentioned a few factors as the main rationale behind his call on USL shares:

• Easing government policy for liquor
• Company entering free trade agreements (FTA) with many countries
• Changing consumer behaviour in India; many people prefer liquor consumption
• Diageo’s takeover has given United Spirits a global expertise benefit
• Focus on a high-margin product portfolio
• Raw material getting cheaper, which should boost margin

Singhvi also said the company will have an “ITC moment” soon. Just like ITC, United Spirits is working on reducing its debts and increasing profit, which would help it strengthen its balance sheet.

ITC shares have grown 13.6 per cent in value so far in 2023, outperforming the overall market. The headline index Nifty50 has declined 5.7 per cent during this period.

What Motilal Oswal makes of United Spirits

Motilal Oswal has maintained a ‘neutral’ rating on United Spirits with a target of Rs 880 apiece (13 per cent upside). It is positive on the company's potential for growth led by various measures undertaken by its CEO over the past year and its fair near-term valuation.

USL share price: Historical performance

USL shares have declined more than 10 per cent so far in 2023, a period in which the headline index has fallen 5.7 per cent.

Singhvi expects the stock to perform better soon.

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