United Breweries to Benefit from Premiumization and Capacity Expansion Despite Q2 Softness

United Breweries is expected to see premiumization gains despite a soft Q2 due to higher rainfall and an elevated base. The company has expanded its brewery capacity by a third in Andhra Pradesh, which, along with improving growth prospects in Maharashtra, is expected to offset excise-related headwinds in Karnataka. Brokerages are positive on the outlook given the focus on the premium segment, expansion, easing supply chain issues, and scope for margin expansion.