United Spirits shares rose up to 4 percent on Thursday after the company reported better-than-expected gross margins for the September quarter, while global brokerage Jefferies maintained a buy rating on the stock, projecting an upside of up to 27 percent.
The stock rose 4.12 percent to hit an intraday high of Rs 1,278 per share on the NSE.
Jefferies has maintained a buy rating on United Spirits with a target price of Rs 1,560 per share, implying an upside of about 27 percent from the stock's previous session's level.
The brokerage said the company's performance in the premium and above (P&A) segment remained weak compared with peers, with volumes declining around 1 percent as momentum in Smirnoff and J&B was offset by headwinds in Maharashtra.
Regular segment volumes fell 30 percent. However, an improved product mix and higher productivity helped expand gross margin by 88 basis points year-on-year to 48 percent.