Buy United Breweries; target of Rs 502: Firstcall Research

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Buy United Breweries; target of Rs 502: Firstcall Research

Firstcall Research is bullish on United Breweries and has recommended buy rating on the stock with a target of Rs 502 in its September 15, 2010 research report.

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Firstcall Research is bullish on United Breweries and has recommended buy rating on the stock with a target of Rs 502 in its September 15, 2010 research report.

"United Breweries (UBL) is a flagship company of UB Group. It is engaged in manufacture, purchase and sale of beer including licensing of brands which constitutes a single business segment. Net sales and PAT of the company are expected to grow at a CAGR of 18% and 42% over 2009 to 2012E respectively."

"At the current market price of Rs 436.50, the stock is trading at 69.97 x FY11E and 58.98 x FY12E respectively. Price to book value of the stock is expected to be at 9.79 x and 8.39 x respectively for FY11E and FY12E. Earning per share (EPS) of the company for the earnings for FY11E and FY12E is seen at Rs 6.24 and Rs 7.40 respectively. On the basis of EV/EBITDA, the stock trades at 26.50 x for FY11E and 23.14 x for FY12E. We recommend 'BUY' in this particular scrip with a target price of Rs 502 for medium to long term investment," says Firstcall Research report.

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To read the full report click on the attachment