Business Standard

UBL: Despite subdued Q1, growth prospects over medium term look positive

Supportive demographics and low beer penetration indicates strong growth opportunity for the beer market leader

United Breweries, beer
Premium

On the whole, the trend in company’s growth from FY22, when analysts see a sharp recovery, would be crucial for the stock. Representative Image

Shreepad S Aute Mumbai
Despite beer major United Breweries (UBL) reporting a lacklustre performance in the June quarter (Q1) and its near-term outlook looking hazy because of the Covid-19 pandemic’s spread, its stock price has risen about 8 per cent since the result announcement on August 14. During this period, the BSE Sensex has risen 1.5 per cent.

Good growth prospects over the medium term, led by supportive demographics and low penetration of beer, is keeping the Street positive on the stock.

“Notwithstanding the near-term impacts, we remain positive on the medium-term outlook of UBL on the back of the huge growth potential for the beer

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 21 2020 | 8:38 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com