ICICI Direct has given Buy recommendation for United Breweries with a target price of Rs. 1800 in its research report issued on Apr 27, 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.

Outlook

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 1800 i.e. 62x P/E on FY24E EPS.

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