Neutral United Spirits Ltd For Target Rs. 1,500 by Motilal Oswal Financial Services Ltd

* We model 6% volume growth and 7% revenue growth in P&A segment. The base is favourable for 2Q as 1QFY25 saw higher channel filling due to general elections.
* We model 5% volume growth and 7% revenue growth in popular segment.
* GM expected to be flat at 45.2% given stable input prices. EBITDA margin expected to inch up 70bp YoY, hit by high expenses during the quarter.
* The impact of Maharashtra’s import duty changes on lower to mid-prestige will be more visible in 2HFY26. However, upper prestige segment remains largely unaffected.
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