- UNSP not only reported 8% sales growth in the Prestige & Above (P&A) segment but also ended the quarter with healthy winter and Christmas/New Year eve sales.

- EBITDA grew 18.4% YoY to INR4.2b

- Despite significant pressure on the gross margin from ENA costs, the company reported operating margin improvement in 9MFY20

- Premiumization & Above (P&A) is likely to grow in double-digits and Popular in low-single-digits

- Reduction in debt and working capital continued in 9MFY20. ~INR15b of assets are to be monetized, providing more opportunity for debt reduction.

- Despite healthy earnings and continued RoCE improvement, the stock trades in line with peers at 42.1x FY21E EPS.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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