United Breweries Ltd, incorporated in the year 1999, is a Large Cap company with a market cap of Rs 31755.06 Crore, operating in Beverages – Alcoholic sector.
United Breweries Ltd’s key Products/Revenue Segments include Other Operating Revenue, Others, Scrap, Non-Alcoholic Beverages and Royalty Income for the year ending 31-Mar-2020.
Investment Rationale
According to Emkay Research, margin improvement from cost savings has been impressive. While Emkay expects some of the gains to reverse, margin trends indicate possible upsides on full recovery in sales. It forecasts FY23/24 operating margins at 17.5 per cent/17.8 per cent vs 17.6 per cent in FY19.
Stock trades at 23x FY23E EV/EBIDA and offers good entry opportunity post the recent correction, said Emkay Research. Lockdown impact is likely to be temporary and benign taxation/pricing correction are expected to be major positives, driving strong growth on full unlocking, it added.
Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 1556.30 Crore, up 20.11 per cent from last quarter’s Total Income of Rs 1295.77 Crore and up 9.15 per cent from last year same quarter Total Income of Rs 1425.87 Crore. Company has reported net profit after tax of Rs 97.53 Crore in latest quarter.
