United Breweries Limited (UBL) AI Stock Analysis

• Market Cap: ₹431.55B
• Dividend Yield: 0.62%
• Average Volume (3M): 11.54K
• Price to Earnings (P/E): 132.5
• Beta (1Y): 0.60
• Revenue Growth: 8.08%
• EPS Growth: -22.42%
• Country: IN
• Employees: 2,875
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 3.80
• Shares Outstanding: 264,405,150
• 10 Day Avg. Volume: 5,836
• 30 Day Avg. Volume: 11,538
• PEG Ratio: 15.10
• Price to Book (P/B): 11.82
• Price to Sales (P/S): 5.79
• P/FCF Ratio: -2.22K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 18.76
• Revenue Forecast (FY): ₹94.85B

• Rating: 65 Neutral
• Price Target: ₹1,709.00 ▲(7.07% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

United Breweries Limited's strong financial performance, characterized by revenue and profit growth and a solid balance sheet, is the primary driver of its stock score. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation, which negatively impacts the overall score.

Positive Factors

Revenue & Margin Expansion

Sustained top-line growth with concurrently improving gross and net profit margins indicates durable demand, stronger pricing or cost control, and better mix. This supports long-term cash generation capacity and resilience to input-cost cycles, underpinning strategic reinvestment and shareholder returns.

Conservative Leverage / Strong Equity

A solid equity base and low leverage provide financial flexibility to fund capex, weather regulatory or state-policy shocks, and pursue expansion or premiumization without onerous interest burdens. This reduces refinancing risk and supports sustained investment in brands and distribution.

Brand Strength & Strategic Partner

A dominant home-market brand portfolio and access to Heineken strategic resources support product innovation, premiumization and distribution know-how. Brand equity drives durable consumer preference and pricing power across channels, aiding long-term revenue predictability and market share defense.

Negative Factors

Inconsistent Operating Cash Flow

Volatile operating cash flow limits predictable free cash flow for capex, dividends or debt repayment. Persistent swings can force episodic financing, constrain strategic spending, and amplify sensitivity to input cost or working capital swings across India’s fragmented state markets.

Negative EPS Trajectory

Declining EPS over recent periods signals pressures on net income relative to share base or margins. If persistent, this can reflect margin compression, higher operating costs or mix shifts that limit retained earnings, reducing capacity to self-finance growth and weakening returns on equity.

Regulatory & State-Level Price Risk

Heavy exposure to state regulations and excise regimes creates structural revenue and margin volatility. Different state policies on pricing, distribution and taxation constrain uniform pricing strategies, raise compliance complexity, and can materially alter demand or profitability across regions.

United Breweries Limited Business Overview & Revenue Model

Company Description

United Breweries Limited manufactures, purchases, and sells beer and non-alcoholic beverages in India and internationally. It offers its products under the Kingfisher Premium, Kingfisher Strong, Kingfisher Ultra, Kingfisher Ultra Max, Kingfisher Ultra Witbier, Kingfisher Radler, Amstel Malt Classic, Kingfisher Storm, Kingfisher Blue, Heineken, Amstel Bier, Sol, Affligem, Edelweiss, Desperados, Bullet, Cannon 10000, Zingaro, Kalyani Black Label, UB Export, London Pilsner, London Pilsner Strong, Taj Mahal Premium, UB Bullet, UB Export Strong, Flying Horse Royal, Kalyani Black Super Strong, Kingfisher Extra Strong, Maharaja Premium Indian Pilsner, and UB Export Premium brand names. The company also licenses its brands; and offers contract manufacturing services. United Breweries Limited was founded in 1915 and is based in Bengaluru, India.

How the Company Makes Money

United Breweries Limited generates revenue primarily through the sale of its beer products, which include several popular brands that cater to different market segments. The company benefits from a strong distribution network that allows it to reach consumers across urban and rural areas in India. Key revenue streams include sales from retail outlets, bars, and restaurants, as well as exports to international markets. Additionally, UBL engages in strategic partnerships with various distributors and retailers to enhance its market reach. The company also explores opportunities in the premium beer segment, which has seen a growing demand. Seasonal promotions and marketing campaigns further contribute to its revenue by driving sales during peak consumption periods.

United Breweries Limited Financial Statement Overview

Summary

United Breweries Limited demonstrates strong revenue and profit growth, supported by a robust balance sheet with low leverage. However, cash flow performance has been inconsistent, affecting the overall financial performance score.

Income Statement

United Breweries Limited has shown a strong revenue growth trajectory, with a notable increase from INR 56,049 crore in 2022 to INR 89,150 crore in 2025. The gross profit margin has improved significantly, indicating better cost management or pricing strategies. The net profit margin also shows an upward trend, reflecting enhanced profitability. However, the EBIT margin has been relatively stable, suggesting potential room for operational efficiency improvements.

Balance Sheet

The company's balance sheet highlights a solid equity base with stockholders' equity consistently growing, reaching INR 43,639 crore in 2025. The debt-to-equity ratio remains low, indicating conservative leverage practices. The equity ratio is strong, underscoring financial stability. However, the return on equity has slightly fluctuated, which might suggest varying net income generation relative to equity size.

Cash Flow

Cash flow analysis reveals a mixed picture. Operating cash flow displays inconsistency, with a dip in 2023 affecting free cash flow negatively. Despite this, the company has managed to maintain reasonable free cash flow levels over the years. While the operating cash flow to net income ratio has been volatile, the recent increase in free cash flow in 2025 is a positive sign.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	93.04B	89.15B	81.23B	75.00B	58.38B	42.43B
Gross Profit	37.67B	38.47B	21.32B	32.35B	18.64B	12.70B
EBITDA	8.74B	8.51B	7.70B	6.33B	7.26B	4.24B
Net Income	4.52B	4.42B	4.10B	3.04B	3.65B	1.13B
Balance Sheet
Total Assets	0.00	82.23B	70.53B	62.80B	59.49B	58.52B
Cash, Cash Equivalents and Short-Term Investments	4.43B	4.43B	1.42B	3.37B	8.71B	4.18B
Total Debt	0.00	6.20B	1.02B	156.20M	97.40M	2.62B
Total Liabilities	-43.70B	38.53B	28.70B	23.11B	20.10B	22.66B
Stockholders Equity	43.70B	43.64B	41.78B	39.65B	39.35B	35.82B
Cash Flow
Free Cash Flow	0.00	-232.50M	-1.22B	-2.76B	7.26B	4.20B
Operating Cash Flow	0.00	2.35B	695.00M	-1.20B	9.00B	6.20B
Investing Cash Flow	0.00	-2.39B	-1.48B	-1.21B	-1.60B	-1.52B
Financing Cash Flow	0.00	2.17B	-1.22B	-2.92B	-2.87B	-883.90M

United Breweries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1596.20
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UBL, the sentiment is Positive. The current price of 1596.2 is below the 20-day moving average (MA) of 1596.78, above the 50-day MA of 1559.34, and below the 200-day MA of 1786.15, indicating a neutral trend. The MACD of 20.43 indicates Negative momentum. The RSI at 62.92 is Neutral, neither overbought nor oversold. The STOCH value of 66.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:UBL.

United Breweries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMBREW	75 Outperform	₹21.80B	16.42	―	0.72%	―	―
TI	66 Neutral	₹89.24B	-24.49	―	0.21%	3.35%	56.08%
SDBL	66 Neutral	₹15.42B	121.41	―	―	-0.87%	10.87%
ASALCBR	66 Neutral	₹14.53B	16.60	―	0.21%	16.02%	48.63%
UBL	65 Neutral	₹431.55B	132.49	―	0.62%	8.08%	-22.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SULA	57 Neutral	₹13.92B	50.36	―	1.67%	-2.15%	-42.78%

United Breweries Limited Corporate Events

United Breweries, Soufflet Malt to Build Major Sustainable Malthouse in Rajasthan

Soufflet Malt, the world’s leading maltster, will build a state-of-the-art malthouse in South Rajasthan, India, in partnership with United Breweries Limited to supply high-quality malt for beers including Kingfisher and Heineken®. The first phase, scheduled for commissioning in early 2028, will have an initial capacity of 110,000 tonnes per year with plans to double output later, advancing Soufflet’s MALTiply 2030 strategy of deploying global capabilities locally and deepening UBL’s supply security.

The project is positioned as a growth engine for the regional brewing ecosystem, expected to create about 400 direct and indirect jobs and 700 supply-chain roles while engaging and training more than 50,000 Indian farmers and sourcing up to 250,000 tonnes of barley annually. Designed around zero liquid discharge, advanced water management and digital grain handling, the facility supports UBL’s sustainable sourcing ambitions, further establishing Rajasthan as an important brewing hub and reinforcing both partners’ innovation, sustainability and long-term value creation goals.

United Breweries Launches Productivity Drive to Cut Costs and Sharpen Market Focus

United Breweries Limited’s board has approved a broad Productivity and Cost Effectiveness Program aimed at driving operational excellence, boosting productivity and improving cost efficiency amid affordability pressures and intense competition in the Indian beer market. The transformation includes reorganisation of business functions, streamlined roles in sales, supply chain and related departments, and the creation of focused teams in corporate affairs, customer service and logistics; optimisation of its brewery network through a new greenfield facility in Uttar Pradesh, closure of the Mangalore plant and strategic partnerships in key markets; localisation of premium brand production; a detailed portfolio review to prioritise high-value SKUs and rationalise underperforming products; and cost-optimisation measures such as higher reuse of bottles, reduced logistics costs, greater domestic sourcing of raw materials and targeted fixed-cost actions. These initiatives, many already underway, are expected to deliver sustained annualised savings of 3%–6%, with the company planning to reinvest the gains to strengthen market growth and capabilities, underlining its intent to enhance profitability, competitiveness and long-term value for investors and other stakeholders.