Sell United Breweries, target Rs 760: UBS

UBS maintains sell on United Breweries with a 12-month target price of Rs 760. UBL lost share to competition between FY10-15 and the trend could worsen as international breweries start gaining scale, said the UBS note.

The Craft beer taking share of consumption in top-tier cities poses risk to bottled beer. The global brokerage firm is of the view that the phased prohibition trend could continue.

UBS sees lower trajectory of operating margin expansion due to higher regulatory intervention.