United Breweries Shares Rises On Resuming Beer Supply To Telangana
Telangana Beverages Corporation assured United Breweries that concerns related to pricing and outstanding payments will be addressed in a time-bound manner.
United Breweries has announced that it will resume beer supply to the Telangana Beverages Corporation Ltd. with immediate effect. This move follows a series of constructive discussions between the two parties, with TGBCL assuring United Breweries that concerns related to pricing and outstanding payments will be addressed in a time-bound manner, the company reported in an exchange filing.
The decision to restart the supply is viewed as a positive step toward resolving the ongoing issues between the two companies. United Breweries stated in its filing that, based on these assurances, the company has opted to restart its supplies to TGBCL temporarily. The company emphasised that this is an interim decision, made in the interest of consumers, workers, and stakeholders, and that it will continue to engage with TGBCL during this period.
This move comes after the earlier disclosure made on January 8, 2025. The resumption of supply is expected to positively impact the availability of beer in the region, benefiting both the company and the consumers alike.
The scrip rose as much as 6.34% to Rs 2,075 apiece. It pared gains to trade 4.86% higher at Rs 2,046 apiece, as of 12:10 p.m. This compares to a 0.63% advance in the NSE Nifty 50.
It has risen 11.14% in the last 12 months. Total traded volume so far in the day stood at 7.4 times its 30-day average. The relative strength index was at 55.
Out of 16 analysts tracking the company, seven maintain a 'buy' rating, four recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 1.9%.
