United Breweries shares surge 4% after beer maker beats estimates with Q2 results

UBL share price NSE, UBL Q2 results: United Breweries Ltd (UBL) shares jumped on Friday, October 20, after the manufacturer of beer and non-alcoholic beverages reported a strong set of quarterly financial results. The stock of United Breweries, whose popular brands include Kingfisher, gained more than four per cent to Rs 1,634.5 apiece on NSE.  

After market hours on Thursday, United Breweries, controlled by Dutch multinational brewing company Heineken NV, reported consolidated net profit of Rs 107.2 crore for the quarter ended September 30, translating to a year-on-year fall of 20.1 per cent but much better than analysts’ estimates.  

UBL's quarterly revenue from operations rose 14.1 per cent to Rs 4,192.9 crore, driven by a seven per cent spike in sales volumes, according to a regulatory filing. The company’s margin stood at 9.8 per cent for the second quarter of the current financial year, in line with the analysts’ estimates. Read more 

EDITOR’S TAKE | ‘Buy’ UBL futures 

Zee Business Managing Editor Anil Singhvi recommended buying UBL futures for targets of Rs 1,605 and Rs 1,623 with a stop loss at Rs 1,555, citing the company’s strong results. He pointed out that the stock has not performed in the past one year despite strong growth in sales volumes.  

UBL share price target 2023: What analysts suggest on United Breweries shares  

JPMorgan upgraded United Breweries to ‘overweight’ from ‘neutral’ after the company’s earnings announcement, and raised its target for the stock to Rs 1,800 from Rs 1,400.The brokerage’s target suggests an upside of Rs 233.8 or nearly 15 per cent from its previous close.  

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