Emkay has given Buy on the stock with a revised price target (PT) of Rs. recommendation for United Breweries with a target price of Rs. y is bullish on United Breweries has recommended buy on the stock with a revised price target (PT) of Rs. 1,930 in its research report issued on Feb 01, 2022
The decline in gross margins was higher than expected due to a sharp rise in packaging materials. Input inflation remains high, and we hope that price hikes and volume leverage from Q1 should offset it partially. We moderate our FY23-24 margin assumptions a bit by 80-130bps. UBBL will be a big beneficiary of post-Covid normalization with a strong volume recovery. Regulatory easing should continue to drive volume momentum ahead. Retain Buy with a TP of Rs1,930 (from Rs1,900), factoring in a 3% EPS cut in FY24 and roll over to Mar’24.