Jefferies starts coverage on Indian spirits makers with 'buy'; shares rise

** Jefferies starts coverage on Indian alcoholic beverage makers, United Spirits UNSP.NS, Radico Khaitan RADC.NS and Allied Blenders ALLE.NS with "buy"

** Stocks rise between 1% and 2.5%

** Jefferies sets price target for UNSP and RADC at 1,570 rupees and 3,590 rupees, respectively; sets Street High PT on ALLE at 620 rupees

** PT on UNSP, RADC, ALLE at ~20%, 25%, ~14% premium on last close

** Brokerage says the spirits sector offers premiumization-led strong growth potential; sees double-digit revenue CAGR across firms with room for margin expansion

** RADC is top pick for Jefferies, on the back of leading EPS CAGR growth over FY25-28; adds UNSP has likely favorable risk reward, ALLE has meaningful upside underway

** Estimates 20% EBITDA CAGR for RADC, ALLE and 13% for UNSP

** UNSP, RADC, ALLE rated "buy" on avg - data compiled by LSEG

** YTD, UNSP down ~19%; RADC, ALLE up 12%, 28%, respectively