United Spirits share price rose in early trade today after credit ratings agency CRISIL revised its outlook on the long term bank facilities and non convertible debentures of the firm. Share price of United Spirits rose 2.14% to Rs 605 compared to the previous closing price of Rs 592.30 on BSE.
United Spirits stock has gained 2.72% in last three days. However, the stock has lost 2.45% each since the beginning of this year and during the last one year. At 11: 27 am, 1.15 lakh shares of United Spirits changed hands amounting to turnover of Rs 6.91 crore on BSE.
Its market capitalisation stood at Rs 43,656 crore.
The large-cap stock hit its 52-week high of Rs 675 on September 27, 2019 and 52-week low of Rs 497 on February 18, 2019.
United Spirits in a communication to bourses said, "CRISIL has revised its outlook on the long-term bank facilities and non convertible debentures of United Spirits Limited (USL) to 'Positive' from 'Stable' while reaffirmed the rating at 'CRISIL AA+'. The short-term rating and commercial paper has been reaffirmed at 'CRISIL A1+'."
"The outlook revision reflects the expectation of improvement in USL's credit profile, commensurate with better cash accrual and leverage over the medium term. USL's standalone earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin improved to 18.0% in the first half of fiscal 2020 (14.3% in fiscal 2019) from 12.6% in fiscal 2018. The improvement in operating margin is driven by the increasing share of the premium segment, optimisation of operating overheads, and employee costs. USL has been particularly successful in gradually shifting its product portfolio towards the luxury, premium, and prestige segments," the company added.
By Aseem Thapliyal