- United Breweries‘ net income for the third quarter is reported at 382.6 million rupees, representing a 55% decrease compared to the previous year.
- The net income fell short of the estimated 1.15 billion rupees.
- Revenue rose by 6.5% year-over-year, reaching 44.2 billion rupees, which surpassed the estimate of 20.59 billion rupees.
- Total costs increased by 7.1% year-over-year to 43.5 billion rupees.
- Other income saw a decline of 58% year-over-year, totaling 100.8 million rupees.
- There was a significant one-time expense of 257.6 million rupees due to severance payments in the third quarter.
- Volume growth for the third quarter accelerated, reaching 8.4%.
- Market analysts have mixed views: 8 recommended buying the stock, 3 advised holding, while 5 suggested selling.
United Breweries on Smartkarma
United Breweries has been under the analyst coverage on Smartkarma, an independent investment research network. Nimish Maheshwari, a prominent analyst, recently published a report titled “United Breweries On and Off with Telangana Government.” The report discusses how United Breweries resumed beer supplies in Telangana after a pricing dispute and unpaid dues. This event highlights the significant influence that breweries have in shaping regulatory policies in India’s top beer market. The resolution of the standoff is crucial for both the state and the brewery, shedding light on the ongoing regulatory and pricing challenges in the industry.
A look at United Breweries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
In analyzing the long-term outlook for United Breweries, the company’s Smartkarma Smart Scores provide a holistic view of various important factors. With a solid Resilience score of 4, United Breweries demonstrates a strong ability to weather market uncertainties and adapt to changing conditions. This suggests that the company is well-positioned to navigate potential challenges in the future.
Furthermore, United Breweries also shows promising Momentum with a score of 4, indicating positive trends in the company’s growth and performance. This momentum, coupled with decent scores in Dividend and Growth at 3 each, suggests a potential for sustained development and shareholder returns. While the Value score is at 2, indicating some room for improvement in terms of valuation, the overall outlook for United Breweries appears optimistic based on its Smartkarma Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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