United Breweries
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
United Breweries (UBL) is currently positioned for a transformative phase, driven by management's focus on premiumization and operational efficiency. Recent commentary from management highlights a strategic pivot towards enhancing the premium segment, with expectations of mid-teens EBITDA margins supported by disciplined pricing and cost management. The company's 'EverGreen 2030' initiative aims for double-digit organic revenue growth, leveraging favorable regulatory reforms and a robust pipeline of premium products. Despite facing near-term challenges from rising input costs and competitive pressures, UBL's long-term outlook remains positive, underpinned by a stable demand environment and a commitment to optimizing its supply chain. Vista's financial outlook reflects an anticipated acceleration in revenue growth beyond historical trends, with margins expected to remain stable. The breweries industry is experiencing favorable conditions, including improving pricing power and a stable demand backdrop, which further supports UBL's growth trajectory. Over the next 12-24 months, key opportunities include capturing market share through premium offerings and expanding distribution, while watchpoints include potential regulatory changes and rising competition from peers like Carlsberg
Why We Like This Stock
- Management's focus on premiumization is expected to drive margin improvement and revenue growth
- Favorable regulatory reforms are likely to enhance pricing power and market share
- A robust pipeline of new products and capacity expansion supports long-term growth potential
Things To Watch Out For
- Rising input costs and packaging expenses may pressure margins in the short term
- Intense competition, particularly from Carlsberg, poses execution risks in the premium segment
- Regulatory uncertainties at the state level could impact pricing power and operational stability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 8,123 | 8,915 | 9,240 | 9,893 | 10,722 |
| Profit Before Tax (Cr.) | 551 | 631 | 507 | 535 | 667 |
| PBT Margin | 6.8% | 7.1% | 5.5% | 5.4% | 6.2% |
| Net Profit (Cr.) | 402 | 445 | 359 | 382 | 476 |
| Earnings Per Share | 15.2 | 16.8 | 13.6 | 14.4 | 18.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Anand Rathi | ▲ Buy | 1,600 | 07-Sep-2026 |
| Choice Equity | ▲ Buy | 1,480 | 04-Sep-2026 |
| DAM Capital | ▲ Buy | 1,685 | 04-Sep-2026 |
| Elara Capital | ► Accumulate | 1,500 | 04-Sep-2026 |
| Investec | ► Hold | 1,453 | 04-Sep-2026 |
| Motilal Oswal | ► Neutral | 1,400 | 06-Aug-2026 |
| ICICI Securities | ► Add | 1,432 | 05-Aug-2026 |
| BofA | ▼ Reduce | 1,200 | 08-May-2026 |
| JPMorgan | ▼ Reduce | 1,300 | 07-May-2026 |
| Kotak Securities | ▼ Sell | 1,220 | 07-May-2026 |
Company Overview
Show Company Profile
United Breweries Limited engages in manufacture, purchase, and sale of beer and non-alcoholic beverages in India and internationally. The company provides beer products under the Heineken Original, Heineken Silver, Kingfisher Premium, Kingfisher Strong, Kingfisher Ultra, Kingfisher Ultra Max, Kingfisher Ultra Witbier, Amstel, Amstel Grande, Bullet, Bullet Super Strong, Cannon 10000, Zingaro, Kingfisher Strong, Kingfisher Flavour Mango and lemon, Kalyani Black Label, UB Export Lager, UB Export Strong, London Pilsner Premium, London Pilsner Strong, and Queenfisher brands; and non-alcoholic products under the Kingfisher Premium Packaged Drinking Water, Kingfisher Strong Power Soda, Kingfisher Ultra-Premium Soda, and Heineken 0.0. It also licenses its brands; and offers contract manufacturing services. In addition, the company is involved in scrap sales. The company was founded in 1915 and is headquartered in Bengaluru, India.