Moneycontrol
Feb 16, 2017 03:33 PM IST | Source: Moneycontrol.com

Buy United Breweries; target of Rs 875: ICICI Direct

ICICI Direct is bullish on United Breweries has recommended buy rating on the stock with a target price of Rs 875 in its research report dated February 13, 2017.

Buy United Breweries; target of Rs 875: ICICI Direct


ICICI Direct's research report on United Breweries


United Breweries’ Q3FY17 revenues were below our expectations. Gross revenues grew 2% YoY (down 1.5% QoQ) to Rs 2185 crore. However, higher excise duty (55% vs. 52% in Q3FY16) and lower other operating income (down 26% YoY) resulted in net revenues degrowth of 6.6% YoY to Rs 1025 crore (I-direct estimate: Rs 1070 crore).


Outlook


We continue to believe that favourable demographics, rising disposable income and very low per capita beer consumption present India as an attractive market for global beer companies. However, we taper our near term estimates accounting the sluggish near term performance and maintain BUY.

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