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UBL looking at volume CAGR of 8-9%, slightly outperforming industry: Elara Capital

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Beer will outperform spirits, going ahead, and that is the trigger for the company, said Karan Taurani, VP Research Analyst, Media and Consumer Discretionary at Elara Capital, in an interview with CNBC-TV18 while adding that, “We are looking at a volume CAGR of somewhere close to 8-9 percent, wherein UBL will be slightly outperforming the industry.”

Heineken has bought 14.8 percent stake in United Breweries from debt recovery tribunal (DRT), on Wednesday, increasing its stake to 62 percent. The deal was done at a 1 percent premium to Tuesday’s closing price, that is the range that is allowed in a special window, what they are spending is close to Rs 5,700 crore.
Beer will outperform spirits, going ahead, and that is the trigger for the company, said Karan Taurani, VP Research Analyst, Media and Consumer Discretionary at Elara Capital, in an interview with CNBC-TV18 while adding that, “We are looking at a volume CAGR of somewhere close to 8-9 percent, wherein UBL will be slightly outperforming the industry.”
“On realisation front, we are expecting mid-single-digit growth there, because of premiumisation picking in,” he further mentioned.
“If they can drive some efficiencies, do some cost savings that they have done during COVID, all these things put together, you could see about 18-19 percent earnings CAGR. With that, our target price of Rs 1,475 could be revised upwards,” Taurani said.
“The premiumisation story for UBL will take a big increase from here on, you will see multiple new premium brands getting launched,” he concluded.
For the full interview, watch the accompanying video.

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CompanyPriceChng%Chng
ICICI Bank676.65 20.70 3.16
ITC212.40 5.40 2.61
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SBI Life Insura1,050.45 24.45 2.38
SBI428.90 6.85 1.62
CompanyPriceChng%Chng
ICICI Bank676.65 20.85 3.18
ITC212.35 5.30 2.56
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