With a market capitalization of ₹ 36,981 crores, United Breweries is a mid-cap company that is engaged in the business of manufacture and sale of beer and non-alcoholic beverages.
The company recently reported an 11.29 percent increase in its revenue from operations to ₹ 4,092.80 crores for the January to March quarter of 2023, against ₹3,677.76 crores reported in the corresponding quarter last year. However, its consolidated total revenue decreased by 93.97 percent to ₹ 9.87 crores in the latest quarter, against ₹ 163.78 crores reported in the corresponding quarter last year.
It reported revenue from operations of 16,651.09 crores for the financial year 2022-23 (FY23), up 26.88 percent as compared to ₹ 13123.92 crores reported in FY 2021-22. However, its net profit declined by 16.77 percent to ₹ 304.68 in FY23, against ₹ 366.08 crores in FY22.
The company has also recommended a dividend of ₹ 7.50 per equity share, for the financial year ended March 31, 2023, subject to the approval of the same by the members at the ensuing 24th Annual General Meeting (AGM) of the Company scheduled to be held on Thursday, August 10, 2023.
Ace investor Radhakishan Damani’s investment arm Derive Trading And Resorts Pvt Ltd held a 1.21 percent stake or 31,95,834 shares in the October to December quarter of 2022. However, it has reduced its stake to 1.19 percent or 31,36,536 shares in the January to March quarter of 2023.
United Breweries has a low return on equity of 7.70 percent and an ideal debt-to-equity ratio of 0.00. Its shares were trading at a price-to-earnings (P/E) ratio of 121.62, which is higher than the industry P/E of 32.38 indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 72.71 percent stake in the company followed by mutual funds with 13.19 percent, retail investors with 6.75 percent, foreign institutions with 6.43 percent and other domestic institutions with 0.92 percent.
Written by Simran Bafna
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