United Breweries bounces back from lows, hits 52-week high

NEW DELHI: United Breweries Ltd bounced back from its lows of Rs 691.60 to hit its 52-week high of Rs 792 on Monday after Citigroup said the company could be the next to get added in the MSCI India index.

“Divi's Laboratories and United Breweries may get added to MSCI India index as part of the index provider’s semi-annual review announcement expected on November 14,” a Reuters report quoting Citigroup said.

At 03:25 pm, United Breweries was trading 6.8 per cent higher at Rs 779.50. The stock surged over 7 per cent in intraday to hit its 52-week high of Rs 792.

Last week, UBS downgraded United Breweries from ‘buy’ to ‘sell’, following its recent performance. The brokerage feels good news of a takeover by Heineken is already priced in.

The investment bank is of the view that the long-term story remains intact as UB is a beneficiary of rising disposable income and changing social norms in India. However, the brokerage has lowered the target price from Rs 650 earlier to Rs 625.