Time period given by analyst is one year when United Breweries Ltd. price can reach defined target.
United Breweries Ltd., incorporated in the year 1999, is a Large Cap company (having a market cap of Rs 41643.81 Crore) operating in Beverages – Alcoholic sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1125.63 Crore, down -27.67 % from last quarter Total Income of Rs 1556.30 Crore and down -10.97 % from last year same quarter Total Income of Rs 1264.30 Crore. Company reported net profit after tax of Rs 30.94 Crore in latest quarter.
Investment Rationale
Inspite of the challenges faced by the company and sector in general (Covid disruption, high taxation, price control in 60% of markets, CCI order etc), beer sector (of which UBL commands 52% of market share) remains underpenetrated (12% of total alcohol consumed) with improving beer portfolio (addition of super-premium beer, craft beer etc) and is preferred by young consumers. Owing to the uncertainty related to the steps management would undertake to deal with the CCI order, the brokerage changes Hold stance to Reduce.
Promoter/FII Holdings
Promoters held 72.7 per cent stake in the company as of June 30, 2021, while FIIs held 9.8 per cent, DIIs 11.3 per cent and public and others 6.2 per cent.
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