Pernod Ricard stock (FR0000120693): Indian court setback and fresh UBS valuation in focus

Pernod Ricard shares on Euronext Paris were modestly weaker on Friday after an Indian court rejected the French spirits group's plea to restart liquor sales in New Delhi, extending a multi-year halt in one of its key Indian markets, while UBS reiterated a Neutral rating and EUR 70 price target on the stock.

The company, headquartered in France and listed on Euronext Paris under the ticker RI, has been absent from retail shelves in the Indian capital for around three years due to license and regulatory disputes, and the latest court decision further delays any return to that market, according to reporting from Reuters relayed by Indian media on 05/29/2026.

According to coverage by The Economic Times on 05/29/2026, the Delhi High Court turned down Pernod Ricard's request to sell its spirits in New Delhi, maintaining a ban that has kept brands such as Absolut vodka and Chivas Regal out of the city since 2023.

Indian authorities had previously refused a local license amid allegations that the group violated aspects of the 2021 excise policy, and the company is also contesting a demand for back taxes tied to the valuation of Scotch whisky imports into India, as reported by Reuters on 05/27/2026.

The tax dispute centers on claims that Pernod Ricard understated the value of certain Scotch whisky imports by not fully disclosing age and composition details, which Indian investigators say led to lower import duties and a proposed back-tax bill equivalent to roughly USD 314 million, with potential total exposure above USD 600 million including penalties if the company loses, according to filings cited in Indian press on 01/24/2026.

The combined effect of the ongoing Delhi sales ban and the tax case underscores how critical India is as a growth engine for the Paris-listed group, with India having generated about USD 2.9 billion of revenue in the last reported year, according to Reuters figures cited in domestic media.

The stock traded around the mid-EUR 60s on Euronext Paris during Friday's session, with only a modest percentage move despite the legal setback, reflecting that investors had already priced in a lengthy dispute in India, according to traders quoted in regional market commentary on 05/29/2026.

In its home market of France, Pernod Ricard remains part of the large-cap Euronext universe and a key consumer name for domestic equity investors, while in Germany the shares are also available via platforms such as Tradegate for euro-based retail traders looking to access the French spirits sector.

As of: 05/29/2026

By the editorial team - specialized in equity coverage.

Pernod Ricard: core business model

Pernod Ricard focuses on building global spirits brands across categories such as whisky, vodka, and cognac, with revenue largely driven by premium and super-premium labels distributed through on-trade and off-trade channels worldwide.

Valuation metrics and multiples for Pernod Ricard

On the valuation side, UBS reaffirmed a Neutral stance on Pernod Ricard with a EUR 70 price target on 05/29/2026, according to a note summarized by MarketScreener, framing the current share price as broadly aligned with the bank's assessment of fair value.

The same UBS comment, as reported by MarketScreener, indicates that the bank's target embeds a view that near-term earnings growth will be tempered by softer demand in some markets and ongoing regulatory headwinds in India, while still reflecting the resilience of the company's premium spirits portfolio and its cash-generating capacity.

Based on recent market data compiled around the time of the UBS note, Pernod Ricard trades on valuation multiples that place it broadly in line with major global spirits peers on forward earnings and enterprise value to EBITDA, with a dividend yield that remains a component of total shareholder return but not the central driver of the investment case for the stock.

Conclusion

The latest Delhi High Court decision prolongs Pernod Ricard's absence from New Delhi's liquor market and keeps the Indian regulatory and tax issues firmly on the radar for investors monitoring the French spirits group's risk profile.

At the same time, the reaffirmed EUR 70 price target and Neutral stance from UBS highlight that at least one major bank views the current valuation on Euronext Paris as roughly balanced between these challenges and the strength of the company's global premium brands, suggesting that future share price performance will hinge on how effectively Pernod Ricard can navigate its Indian exposure relative to broader demand trends in the global spirits sector.

Disclaimer: This article does not constitute investment advice. The comprehensive scope of this informative article was made possible through the use of a.i.. Stocks are volatile financial instruments.