United Breweries' outperformance unlikely to sustain in the near term

While there is little doubt that volume recovery would be challenging for the liquor segment, investors seem to be in favour of beer than whiskey if the stock performance of the two listed alcoholic beverage companies has anything to go by. The stock of United Breweries (UBL) has gained 4 per cent in the last one month versus 0.5 per cent rise in the stock of United Spirits (UNSL).  However, the UBL’s outperformance is unlikely to sustain in the near term as it is expected to lag UNSL in terms of recovery. To start with, while winter is a peak season for spirits, beer co.....

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