United Breweries Ltd. is a conglomerate that has been dealing with alcoholic beverages like beer. It is currently India’s largest beer maker.
The market capitalisation of United Breweries Ltd. as on 11 July 2018 is Rs.31,600 crore.
Company’s Wealth and Recent Performance
- United Breweries delivered a double digit volume growth of 10% since FY 2010-11. This helped the company gain its market share in Karnataka, Telangana, Andhra Pradesh, Orissa, Rajasthan, and Tamil Nadu. The company’s gross profit increased by 15% while the net revenue was up by 18% for the FY 2017-18 ended 31 March 2018. The profit before tax (PBT) recorded a surge of 75%.
- In Q4 FY 2017-18, the company recorded a volume growth of 24% as against the industry growth of 22%. The company’s net revenue saw an increase by 32% at Rs.1,469.3 crore. UB Ltd. has recommended dividend @ 200% i.e., Rs.2 per equity share for FY18.
- The company managed to deliver a strong quarter and year in spite of the enforcement of the highway ban in Q1 as well as the introduction of GST in Q2.
- UB Ltd. is looking forward to increase its capital expenditure towards expanding the capacity by around 50% in order to meet consumer demand in FY 2018-19. The company also has plans to foray into the craft beer market by the end of the current financial year. As per All India Brewers’ Association, craft beer is growing at around 20% per year in India. Kingfisher Ultra and Heineken, both of which are mild beers from UB have recorded a strong growth of around 30-40% year-on-year over the last 2-3 years.
United Breweries Stock Information Stock Trends in 2018
- On 1 January 2018, the opening price of United Breweries Ltd. stock was Rs.1,079. The scrip increased by over 85 points in the first half of the month. However, it fell by the end of the month. The opening price of the stock by the end of January was Rs.1,134. In the month of February, the stock price fell owing to a fall in Q3 profits. The scrip fell by over 85 points in February and was at Rs.1,060 by the end of the month.
- The price of the stock continued its downfall in March as well. By the end of March, the scrip was down by more than 110 points at Rs.955. The stock gained some momentum in April and was close to Rs.1,200 by the end of April thereby recording an increase of almost 250 points. In May, the stock price was pretty stable as the company saw a huge increase in profit for Q4. In June, the scrip picked up pace and ended the month at Rs.1,140.
United Breweries Stock Information Stock Trends in 2016 and 2017
- The opening price of the stock on 1 January 2016 was Rs.941 on NSE. It fell below 100 points in the first half of the month. By the end of the month the scrip was down by another 60 points and was at Rs.777. The stock price of United Breweries changed marginally in the month of February. In March, the scrip gained over 30 points and ended the month at Rs.828. The month of April saw the price fall down by 65 points as the scrip was at Rs.764 by the end of the month.
- In May, the stock decreased by around 30-40 points and ended the month at Rs.723. In the month of June, the scrip was stable and changed marginally. In July, the stock gained some strength and was up by around 80 points. The scrip was between 800- 830 throughout the month of August. By the end of August, the price of the stock was at Rs.829.
- In September, the scrip soared by over 60 points in the first half of the month. It crossed Rs.900 for a while in the second half of the month. The stock was pretty stable in the month of October but fell at the end. The opening price of the stock by the end of October was Rs.870. In November, the scrip changed marginally amid poor result in Q2 net profit. The scrip fell by 90 points in the month of December. By the end of the month, the opening price of the stock was at Rs.789.
- On 2 January 2017, the opening price of United Breweries Ltd. was Rs.809 on NSE. The scrip changed marginally throughout the month. The same pattern continued in the February and ended the month ast Rs.790. In the month of March and April, the scrip did not change much and was pretty stable. By the end of April, the stock was at Rs.775.
- The scrip finally picked up pace in the month of May by around 60 points and ended the month at Rs.798. The stock changed marginally in June but gained some strength in July. The scrip was at Rs.815 at the end of July. The price of the stock did not witness any major fluctuations in the month of August as well.
- The opening price of the stock at the beginning of September was Rs.796. It gradually increased by 60 points by the end of the month. In the month of October, the scrip gained strength and was up by 200 points. The opening price of the stock by the end of October was Rs.1,045. In November, the scrip continued its increase and was up by over 90 points by the end of the month. The price of the stock was pretty stable in the month of December and ended the month at Rs.1,079.
Should you invest in United Breweries Ltd?
- The stock price of United Breweries Ltd. has been stable for the past couple of years. It has not seen a drastic fluctuation in the price.
- Investing in United Breweries Ltd. could yield good returns for a long term. The company has been a top player in the alcohol beverage sector in India for decades and has relatively less competition. It is also eyeing to enter the craft beer market in the FY 2018-19. However, it is strongly advised to do your own research or take expert advice before investing your hard-earned money in the stock market as it includes a certain amount of risk and uncertainty.
United Breweries (UB) forayed into brewing with 5 breweries in South India in 1951. The company was bought by the late Mr. Vittal Mallya in 1947 following which he became the chairman in 1948. UB Ltd. sells beer under the Kingfisher brand. UB continued to expand its base during the 1950s and 60s by acquiring other breweries. The company's flagship Kingfisher Premium Lager beer was launched in 1978 and is currently available in 69 countries. UB also launched the Kingfisher Strong beer in 1999. In 2010, Heineken breweries in India came under the management of UB following which in 2012 Heineken beer was brewed by UB in India. In 2015, 2016 and 2017, the company released Kingfisher Ultra Max, Buzz and Storm respectively. The company has a total of 21 manufacturing plants across India.
Management of the Company
Mr. Shekhar Ramamurthy - Managing Director and CEO
Shekhar Ramamurthy took over as the Managing Director (MD) and Chief Executive Officer (CEO) of United Breweries in 2015. Prior to this, he was working as the Chief Operating Officer (COO) and has been associated with the company for more than 30 years. Ramamurthy is a graduate from IIT Delhi and is an alumnus of IIM Calcutta.
Listings in NSE, BSE, and Indices
The stock of United Breweries Ltd. is available for trading on the two major stock exchanges of India - The National Stock Exchange Limited (NSE) and The Bombay Stock Exchange (BSE).
Sector: Infrastructure - Breweries & Distilleries
The company forms a part of important indices like:
- Nifty 100
- Nifty 500
- Nifty 200
- Nifty FMCG
- S&P BSE 200
- S&P BSE 500
- Nifty India Consumption
UB City, No 24, Vittal Mallya Road,
Bengaluru,Karnataka - 560001
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