New Delhi. Global brokerage firm Goldman Sachs has advised to buy shares of liquor giant United Spirits. The brokerage firm has expressed hope of a rise in the stock, after which the stock of United Spirits saw a rise of 2 percent during trading on Monday. This is the company that makes Black Dog liquor.

According to foreign investment bank Goldman Sachs, India's spirits market is witnessing a broad trend of premiumization, in which United Spirits is in a better position. The brokerage firm has given a buy opinion on the stock and has given a target of Rs 1650, which indicates an increase of about 14 percent from the previous session's closing price.

Closed at Rs 1475.85 with a gain of 1.87 percent.
At the end of trading on Monday, the stock of United Spirits closed at Rs 1475.85 with a gain of 1.87 percent.

Scotch import tariffs may be reduced.
Goldman Sachs said that the India-UK trade deal may reduce the Scotch import duties, which may further boost the growth of this category. The slowdown in conjuncture in India in the near future is also affecting United Spirits, but according to the brokerage, growth in Andhra Pradesh may balance this impact.

Macquarie had given an 'underperform' rating.
However, last month Macquarie maintained an 'underperform' recommendation on this stock, citing tough competition, which could impact growth prospects.

The international brokerage says that a key competitor, Pernod India, has indicated that it is outpacing the industry and reported 2 percent sales growth in the September 2024 quarter. Pernod expects this sales momentum to fully reverse in the December 2024 quarter and expects strong growth for the financial year ending June 2025.