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United Breweries's NSE-listed shares dropped as much as 1.5 per cent to Rs 1,151 in thin trade as Goldman Sachs has initiated coverage on the stock with a “neutral” rating and a price target of Rs 1,171.
Analysts believe that the company is well placed to benefit from a pick-up in volume growth and premiumisation of the market. They say that the company is already pricing in its faster growth and better margins.
Growth opportunity for brewers in India appears quite promising but some barriers still persist such as high prices compared with other spirits/non-alcoholic beverages, significant cultural/social barriers and government intervention, Goldman Sachs says.
About four out of 10 brokerages have rated the stock “buy” or higher, one “hold” and five “sell” or lower; their median price target is Rs 1,203.
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