Globus Spirits surged 8% to Rs 166 on the BSE on the back of a two-fold jump in trading volumes. A combined 208,468 equity shares changed hands on the counter on the BSE and NSE till 03:00 pm.
United Breweries (UBL) soared 6% to Rs 1,380, its highest level since October 1, 2018. The stock was trading 6% lower from its 52-week high level of Rs 1,464 touched on September 28, on the BSE in intra-day trade.
Analysts at ICICI Securities have ‘buy’ rating on the stock with target price of Rs 1,490 on the BSE. UBL recorded strong volume growth of 17% vs. industry growth of 11%. The growth was also favourable due to a continued channel filling in UP due to changes in route to market in the state, which led to granting of large number of new wholesale licenses.
“The theme around favourable demographics, rising disposable income and low per capita beer consumption continues to attract global beer companies in India. From a regulatory perspective the worst appears to be over with fading of highway ban and stable state excise policies, which would create a favourable consumer pricing scenario and assist overall volume growth. In addition to the same, formalisation of the sector (corporation model) would benefit large players like UBL,” the brokerage firm said in result update.
Pioneer Distilleries, Radico Khaitan and United Spirits among other stocks from the sector were up in the range of 2% to 4% on the BSE. In comparison, the S&P BSE Sensex was up 0.13% at 36,330 points.