Shares of this alcohol stock under the ‘large-cap’ category hit its 10 percent upper circuit on Wednesday after the Promoter Group member released robust trading updates for January-March 2024 (Q1). In the past month, the company’s stock gained nearly 20 percent for its holders.
With a market capitalization of Rs 54,088.04 crores, the stocks of United Breweries Limited opened their trading hour on Wednesday at Rs 1,874.35 and closed the session at Rs 2,045.65, hitting its 10 percent upper circuit compared to the previous closing level of Rs 1,859.70 apiece.
Such sharp share price movements were observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated about the trading updates received from “Heineken N.V.”, a Promoter Group member of United Breweries Limited, for the period between January-March 2024 (Q1).
“In India, net revenue (beia) grew by 20% organically, driven by volume and positive price mix. Beer volume grew in the low-teens, ahead of the market, cycling route-to-market changes from last year. To celebrate International Women’s Day, we introduced Queenfisher, an all-women initiative. Our premium portfolio grew volume in the low twenties, led by Kingfisher Ultra and Heineken® Silver.”, said the Promoter in a media release.
During the recent financial quarters, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, witnessed a dip in numbers with the former reducing from Rs 1,890 crores during Q2FY24 to Rs 1,824 crores during Q3FY24, and the latter, keeping the timeframe the same, slipped from Rs 107 crores to Rs 86 crores.
In addition to the above, the company’s ratio analysis portrays the return ratios, viz, the return on equity (RoE) and the return on capital employed (RoCE), reported decent numbers during FY23 with the former reported at 7.66 percent and the latter at 11.36 percent.
United Breweries Limited is engaged in the business of brewing as well as selling beer, its major revenue-generating segment, and other flavored malt beverages in India. With dozens of production facilities in India, the company licenses its brands to be manufactured in Australia, New Zealand, and the United Kingdom for sale worldwide.
Written by Amit Madnani
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