Ticker: 532478/UBL

ISIN : INE686F01025

Industry analysis: Drinking alcohol is not new in India. From ancient times, Ayurveda, the ancient Indian way of treatment, uses aasva and aarishta which are basically alcohols.

Even though alcohol drinking is extremely regulated and accepts something taboo, the Indian Alcoholic beverages market is growing at the rate of 10% since 2007. The total beverages industry in India is valued at US$12 Billion. The alcoholic beverage market is part of it with milk base and non-alcoholic soft drinks. Indian alcohol market is dominated by Whiskey, however, the wine market is expected to grow with a high CAGR.

As the income levels are increasing, it is expected that expenditure on alcohol will also increase. A big part of the Indian population is young, it is also expected that the demand will not decline very Soon. All because of this, many Global companies are coming to India and acquiring Indian-based companies. In 2014 Diageo invested $ 3 billion and now holds a 54.78% Stake in United Spirit. In short, Global number 1 Now holds a controlling stake in number 2.

Company analysis: The company is India’s largest manufacturer of Beer. The company sold its brand across India and 52 countries. The company’s product portfolio is big and includes many big brands.

  • Kingfisher strong
  • Kingfisher premium
  • Kingfisher draught: Beer in Can 500 ml package. Specially Manufacturing for the people who love ‘Beer on tap’
  • Kingfisher ULTRA – Superpremium Beer for newly emerging markets,
  • Kingfisher blue – Specially Targeted for Young people and taking care of Sporty culture,
  • Kingfisher Red,
  • Kingfisher strong Fresh,
  • Kingfisher Bohemia,
  • Zingaro (Strong bear),
  • London pilsner,
  • UB Export and UB Export are strong famous in Karnataka. Thanks to the Karnataka excise department, it is a beer for classes as the extra tax make it out of the  reach of the masses
  • Kalyani Black Label and Kalyani Black label strong,
  • Bullet – Favorite in Rajasthan from launch Because of its rustic and son of the soil image with attractive price
  • Charger, Marco Polo, Kingfisher Ice, etc

The company manufactures all of them in plants including

  • Srikakulam, Andhra Pradesh
  • Kuthambakkam and Aranvoyal, Tamil Nadu
  • Ludhiana, Punjab
  • Kalyani, West Bengal
  • Ponda, Goa
  • Mallepally and Kothlapur, Telangana
  • Chopanki and Shahjahanpur, Rajasthan
  • Naubatpur, Bihar
  • Dharuhera, Haryana
  • Nelmangala and Mysore, Karnataka
  • Khurda, Odisha

SHAREHOLDING BSE Data

Financial Performance and Ratio 

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Future Prospects: As of now Heineken is holding a big chunk and Vijay Mallya is out. there is no issue that Heineken is the Real owner of the company.

The Future of The company is not under big pressure as the debt issue is not here. The brand Kingfisher is a big identity itself. The new promoter is known worldwide. In India also it is not a big issue to sell beer. The Financial Performance of the company is great.

It is stock to keep in the portfolio as hardly there is any extra cost for the company. It’s a Good buy for Long Run which may make wealth with a Dividend also.

Invest only if your religion is permitting.