United Breweries - Good Q3 Performance; Delayed On-Trade Normalcy An Overhang: Motilal Oswal
Cans of Kingfisher Beer, made by United Breweries Ltd., are stacked in a liquor store in New Delhi, India. (Photographer: Adam Ferguson/Bloomberg News)

United Breweries - Good Q3 Performance; Delayed On-Trade Normalcy An Overhang: Motilal Oswal

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

United Breweries Ltd. reported 15% YoY decline in volumes in Q3 FY21.On the other hand, rebound from the steep demand trough seen earlier in the year has been better than expected.

We believe on-trade recovery would be gradual, and higher in-home consumption would be witnessed over the next few quarters. This would benefit spirits over beer.

Accordingly, the total revival to normalcy is likely to be delayed for the company.

Given that vaccinating the general population would take over a year, complete on-trade recovery is likely to be delayed. This would in turn delay normalcy in beer consumption well beyond Q1 FY22.

Click on the attachment to read the full report:

Motilal Oswal Tech Mahindra Q3FY21 Result Update.pdf


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