ICICI Direct has given Buy recommendation for United Breweries recommended buy rating on the stock with a target price of Rs 1900 in its research rep with a target price of Rs. 1900 in its research report issued on Oct 21, 2022
ICICI Direct’s research report on United Breweries
United Breweries (UBL) is the biggest beer player in the domestic market (~54% market share), a sector largely dominated by MNCs (~85% of market). On-trade sales comprise ~25% of revenues (rest 75% off-trade) • Heineken, one of the world’s largest beer companies, holds 72.7% stake in United Breweries.
Due to long term growth story in the industry and a well-managed company with MNC parentage, we maintain our BUY rating on the stock. We value the stock at Rs 1900 i.e. 63x P/E on FY24E EPS.