United Breweries Ltd logo

United Breweries Ltd

UBL NSE

United Breweries Limited (UBL) is engaged in the business of manufacture and sale of beer and non-alcoholic beverages. [1]

AI Verdict: HOLD Confidence: 5%

UBL trades at a PE of 85.8x with declining profits (TTM profit growth of -19%) and a 1-year stock CAGR of -31%, making it expensive on fundamentals. However, its dominant market position in Indian beer, healthy dividend payout of 62.8%, and improving working capital efficiency (reduced from 45.5 to 24.6 days) provide a floor. The stock is best held for existing investors but not attractive for fresh entry at current valuations.

Key Fundamentals

SmallcapBreweries & DistilleriesBeverages
Market Cap
₹35,422 Cr
Volatility
Moderate
P/E Ratio
85.07
EBITDA
₹806 Cr
Return on Equity
9.82%
Debt to Equity
0.08
Book Value
₹171.03
EPS
₹16.92
52W High
₹2,110
52W Low
₹1,276

Technical Indicators

Key Insights

Strengths

2
  • Company has been maintaining a healthy dividend payout of 62.8%
  • Company's working capital requirements have reduced from 45.5 days to 24.6 days

Weaknesses

3
  • Stock is trading at 7.81 times its book value
  • Company has a low return on equity of 9.73% over last 3 years.
  • Company might be capitalizing the interest cost

Growth Rate

Revenue Growth
3.23% ↘
Net Income Growth
-9.90% ↘
Cash Flow Change
238.20% ↗
ROE
3.05% ↘
ROCE
5.37% ↗
EBITDA Margin (Avg.)
-11.95% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk high

UBL trades at a PE of 85.8x with declining profits (TTM profit growth of -19%) and a 1-year stock CAGR of -31%, making it expensive on fundamentals. However, its dominant market position in Indian beer, healthy dividend payout of 62.8%, and improving working capital efficiency (reduced from 45.5 to 24.6 days) provide a floor. The stock is best held for existing investors but not attractive for fresh entry at current valuations.

Bull Case 8
  • Dominant market leader in Indian beer with a large market cap of Rs 35,933 Cr providing institutional liquidity and index inclusion benefits
  • Healthy dividend payout ratio of 62.8% demonstrates shareholder-friendly capital allocation and management confidence in cash flows
  • Working capital efficiency improved significantly from 45.5 days to 24.6 days, freeing up capital and improving cash conversion
  • 5-year compounded sales growth of 17% shows strong top-line momentum driven by premiumization and volume recovery post-COVID
  • 5-year compounded profit growth of 26% indicates operating leverage potential when input costs normalize
  • 10-year stock CAGR of 6% despite recent correction shows long-term wealth creation track record
  • 10-year average ROE of 10% is consistent and reflects stable franchise economics in an oligopolistic market
  • Dividend yield of 0.75% provides modest income support during periods of capital stagnation
Bear Case 8
  • PE of 85.8x is extremely elevated for an FMCG company with single-digit profit growth, implying stretched valuations with limited margin of safety
  • Stock has declined 31% over the past 1 year, indicating severe institutional selling and negative momentum
  • TTM profit growth of -19% signals margin compression from elevated barley prices or higher excise duties
  • 3-year ROE of only 9.73% is below cost of equity, indicating the company is not generating adequate returns for shareholders
  • Price-to-book ratio of 7.85x is very high for a company earning sub-10% ROE, suggesting poor capital efficiency relative to market pricing
  • 42.86% of analysts rate the stock a SELL (9 out of 21 analysts), reflecting bearish consensus on near-term prospects
  • 3-year stock CAGR of -4% means investors have lost money over a meaningful holding period despite broader market gains
  • Possible capitalization of interest costs raises concerns about true profitability and quality of reported earnings

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Neutral 1
  • No new encumbrances in FY26 Jun 22

    United Breweries confirmed no new encumbrances beyond prior disclosures for FY26, in compliance with SEBI takeover regulations.

TL;DR: Limited news flow for United Breweries this period with only a routine regulatory compliance disclosure. No material headwinds or positive catalysts emerged. The absence of negative developments is mildly reassuring, but investors should watch for upcoming quarterly results and any regulatory changes in the alcoholic beverages space for directional cues.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,766
2,275
1,890
1,824
2,133
2,475
2,117
2,000
2,323
2,864
2,053
2,073
2,250
Expenses
1,712
2,052
1,706
1,678
1,991
2,190
1,890
1,859
2,136
2,553
1,923
1,847
2,111
Operating Profit
54
223
184
146
143
285
227
141
187
311
130
226
139
OPM %
3%
10%
10%
8%
7%
12%
11%
7%
8%
11%
6%
11%
6%
Other Income
12
10
12
25
26
7
10
-16
8
11
15
-8
82
Interest
1
2
1
2
2
2
2
3
6
11
15
17
29
Depreciation
51
51
51
52
58
58
57
61
57
63
64
69
76
PBT
13
180
144
117
110
233
178
61
132
248
66
132
116
Tax %
27%
24%
26%
27%
26%
26%
26%
37%
26%
26%
30%
39%
12%
Net Profit
10
136
107
86
82
174
132
39
98
184
46
81
102
EPS in Rs
0.37
5.15
4.06
3.23
3.07
6.56
5
1.45
3.69
6.95
1.76
3.06
3.85
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
4,688
4,833
4,729
5,619
6,475
6,509
4,243
5,838
7,500
8,123
8,915
9,240
Expenses
4,066
4,136
4,087
4,716
5,337
5,633
3,862
5,142
6,884
7,426
8,074
8,434
Operating Profit
622
697
642
903
1,138
876
381
697
616
696
841
806
OPM %
13%
14%
14%
16%
18%
13%
9%
12%
8%
9%
9%
9%
Other Income
37
82
52
13
32
9
43
30
16
74
10
100
Interest
73
81
59
48
31
31
23
15
5
7
13
72
Depreciation
208
244
287
260
260
285
232
217
211
212
233
272
PBT
379
455
348
608
879
569
169
494
417
551
605
562
Tax %
31%
34%
34%
35%
36%
25%
33%
26%
27%
25%
27%
26%
Net Profit
260
299
230
395
563
428
114
366
305
411
442
413
EPS in Rs
9.83
11.28
8.68
14.91
21.29
16.18
4.28
13.82
11.5
15.51
16.71
15.63
Div. Payout %
10%
10%
13%
13%
12%
15%
12%
76%
65%
64%
60%
64%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
26
26
26
26
26
26
26
26
26
26
26
26
Reserves
1,824
2,121
2,308
2,664
3,157
3,494
3,556
3,909
3,938
4,152
4,337
4,496
Borrowings
836
806
594
312
211
252
262
10
16
102
620
1,317
Other Liabilities
1,198
1,413
1,550
1,721
1,989
1,778
2,008
2,004
2,300
2,773
3,239
3,854
Total Liabilities
3,885
4,366
4,479
4,723
5,384
5,551
5,852
5,949
6,280
7,053
8,223
9,693
Fixed Assets
1,836
1,822
1,750
1,730
1,777
1,926
1,949
1,913
1,851
1,776
1,749
2,050
CWIP
90
61
137
72
190
199
129
110
77
173
253
512
Investments
0
0
0
0
0
0
6
8
8
8
8
8
Other Assets
1,959
2,483
2,591
2,921
3,417
3,425
3,768
3,918
4,344
5,097
6,213
7,123
Total Assets
3,885
4,366
4,479
4,723
5,384
5,551
5,852
5,949
6,280
7,053
8,223
9,693
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
841
539
544
563
643
508
620
900
-120
70
235
435
Investing
-329
-245
-234
-197
-430
-402
-152
-160
-121
-148
-239
-409
Financing
-572
-297
-301
-364
-196
-95
-88
-287
-292
-122
217
92
Net Cash Flow
-60
-3
9
3
17
10
380
453
-533
-201
213
117
Free Cash Flow
434
296
309
362
206
104
471
727
-274
-121
-23
2
CFO/OP
158
100
107
90
91
80
184
148
3
30
51
81
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
75
84
100
97
85
76
120
78
68
104
117
116
Inventory Days
283
330
333
271
326
312
561
302
321
298
327
152
Days Payable
173
200
204
175
186
156
311
206
161
207
232
127
Cash Conversion Cycle
184
214
229
193
225
232
370
174
228
196
211
141
Working Capital Days
23
21
34
53
48
50
62
31
49
62
50
25
ROCE %
16%
18%
14%
22%
28%
17%
5%
13%
11%
13%
14%
11%

Shareholding Pattern

As of Mar 2026
Promoters 70.83%
DIIs 18.08%
FIIs 4.94%
Public 2.50%
Others 2.49%
Government 1.16%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
57.72%
72.71%
72.71%
72.71%
72.71%
72.71%
72.71%
72.71%
72.71%
72.71%
70.99%
70.83%
70.83%
70.83%
70.83%
70.83%
70.83%
70.83%
70.83%
70.83%
70.83%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
6.63%
6.43%
6.26%
6.43%
6.91%
6.73%
6.26%
5.50%
4.94%
DIIs
9.92%
10.02%
10.40%
10.84%
11.85%
12.95%
13.61%
13.90%
14.41%
14.35%
15.97%
15.75%
16.13%
16.38%
16.61%
16.52%
16.17%
16.37%
16.68%
17.45%
18.08%
Government
16.15%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
1.16%
Public
3.27%
3.28%
3.22%
3.17%
3.14%
3.08%
2.84%
2.77%
2.74%
2.82%
2.87%
2.77%
2.79%
2.71%
2.65%
2.60%
2.48%
2.48%
2.58%
2.58%
2.50%
Others
12.94%
12.83%
12.51%
12.11%
11.14%
10.10%
9.68%
9.46%
8.98%
8.96%
9.02%
9.49%
2.46%
2.50%
2.49%
2.46%
2.45%
2.43%
2.49%
2.49%
2.49%
No. of Shareholders
60,198
66,133
63,301
66,556
66,559
64,675
63,576
61,760
63,475
69,384
67,954
65,418
66,914
67,868
66,794
68,483
68,802
71,177
78,877
81,332
79,464

Documents

Frequently Asked Questions about United Breweries Ltd

What does United Breweries Ltd do?
United Breweries Limited (UBL) is engaged in the business of manufacture and sale of beer and non-alcoholic beverages. [1]
Where is United Breweries Ltd (UBL) listed?
United Breweries Ltd is listed on the Indian stock exchanges. It is listed on NSE: UBL and BSE: 532478. You can view its live share price, financials, and ratios on Tapetide.
Which sector does United Breweries Ltd belong to?
United Breweries Ltd operates in the Fast Moving Consumer Goods sector within the Beverages industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of United Breweries Ltd?
United Breweries Ltd has a market capitalisation of approximately ₹35422.36 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of United Breweries Ltd?
The Price-to-Earnings (PE) ratio of United Breweries Ltd is 85.07. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of United Breweries Ltd?
Over the past 52 weeks, United Breweries Ltd has traded between a low of ₹1,276 and a high of ₹2,110. This range helps investors understand the stock's price volatility and recent trading levels.
Does United Breweries Ltd pay dividends?
Yes, United Breweries Ltd has a dividend yield of 0.75%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of United Breweries Ltd?
United Breweries Ltd has a Return on Equity (ROE) of 9.82%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research United Breweries Ltd on Tapetide?
On Tapetide, you can view United Breweries Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

United Breweries Limited (UBL) is engaged in the business of manufacture and sale of beer and non-alcoholic beverages. [1]

Website unitedbreweries.com
CEO Mr. Vivek Gupta
Employees 2,888
Listed 2008-07-28
Face Value ₹ 1
Issued Size 26,44,05,149

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