United Breweries Beer ka Nasha ?

By Research Desk
about 3 months ago

Competition Commission of India (“CCI”) having initiated an investigation against 3 Beer makers in India for alleged cartelisation for last 11 years of Beer prices. United Breweries Ltd (UBL) has a 52% market share of 320 million cases annually, while two others being Carlsberry and Sab Miller has combined 33% share, while all 3 Beer makers are subject to CCI investigation.

But Electronic Media have not created havoc by repeatedly flashing this news. Reason is simple that all 3 have MNC Promoters, who are having good clout over media, as also, last two are unlisted. UBL the only listed one is having 94% stake held by the Promoters (58%), MF (20%) and ED (16%) in attachment of Mallya shares.

Share price of UBL, inspite of this adverse news was seen ruling higher by 3%, as news was counter balanced by investment experts seen coming on the channels, giving a buy call on the share. UBL is likely to post an EPS of Rs. 16 for FY22, which translates in a PE of 73x, which is also jusitified by the experts. Strangely, PE of sub 50x of other FMCG or consumption stocks like HUL, Britannia and Dabur are seen expensive by these experts.

Yeh hai asli Beer ka Nasha .......

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