United Breweries Q1 Results Review - Weak Performance In Four Out Of Five Peak Seasons: Dolat Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.United Breweries Ltd.’s Q1 FY25 was significantly below our/street estimates despite favorable base (Q1 FY24 volumes were -12%) in a seasonally strong quarter. Volumes/revenues/Ebitda/adjusted profit after tax were +5 / 8.8 / 27.8 / 27.3% YoY. In Q1 FY25, five-year CAGR stands at tepid -0.6%/3.8%/-2.8%/1%.United Breweries' outlook remains mixed due to multiple challenges like-driving beer as a category,lack of significant margin improvement due to persistent investments low profitability with lack of price increases in key states andincreased competition.We reduce our FY25-27E EPS estimates by 8-9% to factor lower growth/margin. Yet, we expect a healthy revenue/ gross profit/Ebitda/PAT CAGR of 10/13/32/37% over FY24-27E driven by low base and operating leverage. Rich valuations, high expectations, volatile growth and increased competition are key risks leaving limited room to err. In view of that, we downgrade to ‘Sell’ rating with revised target price of Rs 1,940 at 55 times H1 FY27E EPS (versus Rs 2,150). Price increase in Telangana, opening of MP state or steep correction in bottle prices are risk to our Sell rating..Click on the attachment to read the full report:.Ashok Leyland Q1 Results Review - Focus Remains On Profitable Growth: Nirmal Bang.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

United Breweries Q1 Results Review - Weak Performance In Four Out Of Five Peak Seasons: Dolat Capital

Rich valuations, high expectations, volatile growth and increased competition are key risks leaving limited room to err, adds the brokerage.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

United Breweries Q1 Results Review - Weak Performance In Four Out Of Five Peak Seasons: Dolat Capital

Rich valuations, high expectations, volatile growth and increased competition are key risks leaving limited room to err, adds the brokerage.

Choose a plan

Follow Us

DOWNLOAD THE APP