The shares of United Breweries Limited (UBL) declined by over 4 per cent to touch a day’s low level of Rs 1536.75 per share on the BSE intraday trade on Monday, amid a penalty from the competition commission of India (CCI).

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The counter has declined by near 9 per cent today from its 52-week high level of Rs 1685 per share, which was hit on September 23, 2021. The stock has gained over 16 per cent in the last one month as compared to its 52-week high.

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The Competition Commission of India (CCI) has imposed penalties totalling over Rs 873 crore on United Breweries Ltd, Carlsberg India, All India Brewers' Association (AIBA) and other individuals for cartelisation in the sale and supply of beer in various states and Union Territories. 

“CCI has now passed an order dated September 24, 2021, inter alia against United Breweries Limited imposing a penalty of Rs.751.83 crores besides imposing penalty on certain individuals and a ceaseand-desist order,” the company said in its filing on Friday.

“We are reviewing the order in consultation with our Legal Advisors, and will evaluate further legal options, as may be available under applicable law.” UBL said in a statement.

The stock on Monday opened weak and have been trading lower since then. At around 12:04 pm, the scrip is trading down 3 per cent to Rs 1556 per share on the BSE as compared to 0.01 per cent rise in the S&P BSE Sensex at the same time today.

Goldman Sachs maintains Buy call on UBL, says focus should now shift to performance of new launches as restaurants and bars reopen. It mentioned, CCI announcement should remove valuation overhang and strong performance from Q3 should shift the focus back to volume growth. 

Similarly, Citi also maintains a Buy rating on UBL, says any weakness in stock can be a buying opportunity with this CCI penalty overhang now goes away. It adds, long-term story of category growth and premiumisation remains solid.