Diageo PLC (LSE: DGE) is an FTSE 100 index listed UK based alcoholic beverage company. The Company has categorized the brands as Global giants, which includes six of the Company's most prominent brands such as Johnnie Walker, Smirnoff, Baileys, Captain Morgan, Tanqueray, and Guinness. The Structural Steelwork segment encompasses the operations of Billington Structures Limited, Peter Marshall Steel Stairs Limited, and Specialist Protective Coatings Limited.

Key Investment Rationale – Buy at GBX 1,776.95

• Strategic Cost Discipline Underpins Future Profitability: The Accelerate programme is on track to deliver approximately USD 625 million in cost savings over three years. This focus on efficiency is a key lever for margin protection and expansion, providing confidence in the company's ability to fund future growth and improve profit conversion.
• Prudent Capital Allocation with Reduced Intensity: Diageo is guiding capital expenditure to the lower end of its USD 1.2-USD 1.3 billion range, indicating a more efficient use of capital. This supports robust free cash flow guidance and allows for greater allocation toward other value-creating initiatives.
• Portfolio Diversification Mitigates Regional Volatility: Diageo's geographic diversification is a key strength, with solid growth in Europe, Latin America, and Africa offsetting challenges in other regions. This acts as a natural hedge, allowing the broader portfolio to absorb market-specific headwinds.
• Successful Tariff Mitigation Strategy Limits Financial Impact: Despite the headwind from US tariffs, which are estimated at USD 200 million annually, Diageo has successfully executed mitigation actions to offset approximately half of this impact on operating profit. This demonstrates strong operational agility and pricing power in its key American spirits portfolio, effectively protecting its bottom line from external political and trade pressures.

DGE Daily Chart & Valuation

 One Year Technical Price Chart (as of November 17, 2025). Source: REFINITIV, Analysis: Kalkine Group

For conducting the valuation, the following peers have been considered: Coca Cola HBC AG (LSE: CCH), Reckitt Benckiser Group PLC (LSE: RKT), etc.

As per the above-mentioned price action and technical indicators analysis, a ‘Buy’ rating has been given on Diageo PLC (LSE: DGE) at the Current Market Price of GBX 1,776.95, as of November 17, 2025, at 10:48 AM GMT.

Markets are trading in a highly volatile zone currently due to certain Macro & Micro-economic data and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 17 November 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided have been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.