Ace investor Radhakishan Damani's investment arm Derive Trading and Resorts has offloaded 1.19 percent stake, or 3,136,536 shares, in United Breweries for the March 2023 quarter (Q4FY23), the latest shareholding pattern filed by the company suggests.

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Damani, who was among the key shareholders of the company for at least 28 quarters in a row, sold his entire stake in the brewery and distillery giant for around Rs 437.8 crore.

On Friday, May 5, the stock settled 2.44 percent lower at Rs 1,395.20 per share. On a year-to-date basis, the stock has fallen 17.28 percent, while plunging about 5 percent in the last one week. The company's market cap stood at Rs 36,984.99 crore as of Friday's close.

According to data from Trendlyne, the average target price of the stock is Rs 1,650. This shows an upside potential of 18 percent from the current market price.

United Breweries Q4 update

United Breweries has reported a decline of 93.97 percent in its consolidated net profit at Rs 9.87 crore for the fourth quarter. The company had posted a net profit of Rs 163.78 crore in the January-March quarter a year ago.

However, the company's revenue from operations rose 11.35 percent to Rs 4,081 crore during the reporting quarter. It stood at Rs 3,665 crore in the corresponding quarter of FY22.

"Gross margin during the quarter was lower as compared to PY (previous year) due to continued inflationary pressures on our cost base, particularly on prices of barley and packaging materials," UBL said in a statement.

Bengaluru-based United Breweries markets beer under the Kingfisher brand and owns various other brands of alcoholic beverages. It has 32 units across the country. Its products are also available in over 60 countries across the globe.

As per corporate shareholdings filed for March 31, 2023, Radhakishan Damani publicly holds 15 stocks with a net worth of over Rs 153,987.2 crore.

First Published:May 5, 2023 5:54 PM IST