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Check Before You Invest : United Breweries Ltd

BSE: 532478 NSE: UBL ISIN: INE686F01025
  |   Sector:  FMCG   |   Industry:  Breweries & Distilleries

Snapshot

Q.1 Which industry/sub-sector does United Breweries Ltd belong to?
United Breweries Ltd belongs to the FMCG sector, operating specifically within the Breweries & Distilleries segment.
Q.2 Is United Breweries Ltd a good quality company?
United Breweries Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is United Breweries Ltd undervalued or overvalued?
United Breweries Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is United Breweries Ltd a good buy now?
United Breweries Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of United Breweries Ltd?
United Breweries Ltd revenue growth is 9.8% for FY-2025 , which is above its 5 year CAGR of 6.5% , indicating faster growth.
Q.2 Gross Profit margin of United Breweries Ltd?
United Breweries Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.5% for FY-2025 , which is above its 5 year median of 4.2% , indicating increasing margins.
Q.3 Operating Profit Margin of United Breweries Ltd?
United Breweries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.43% for FY-2025 , which is above its 5 year median of 8.98% indicating increasing margins.
Q.4 Net Profit Margin of United Breweries Ltd?
United Breweries Ltd Net Profit Margin is 4.96% for FY-2025 , is in line with with its 5 year median of 4.96%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 4.5 4.2
Operating Profit Margin 9.43 8.98
Net Profit Margin 4.96 4.96
Q.5 Return on Asset of United Breweries Ltd?
United Breweries Ltd Return on Asset is 5.71%, which is in line with its 5 year historical median of 5.71%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of United Breweries Ltd?
United Breweries Ltd Return on equity is 10.37% for FY-2025 , which is above its historical median of 9.74%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of United Breweries Ltd?
United Breweries Ltd Return on capital employed is 13.44% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of United Breweries Ltd?
United Breweries Ltd Cash conversion cycle is 26 days, above its historical median of 21 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.51 2.51
ROE 10.37 9.74
ROCE 13.44 13.11
Cash Conversion Cycle 26 days 21 days
Q.9 Debt to Equity ratio of United Breweries Ltd?
United Breweries Ltd Debt-to-Equity ratio is 0.13 , which is above with the industry average of 0.02 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of United Breweries Ltd?
United Breweries Ltd Debt to cash flow from operations is 2.45 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of United Breweries Ltd?
Promoters hold 70.83% of the United Breweries Ltd, with 12.40% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of United Breweries Ltd vs industry peers?
United Breweries Ltd revenue CAGR is 6.49% , compared to the industry median CAGR of 6.49% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 8,915.1 7,499.9
Gross Profit 401.2 315.3
Operating Profit 841 696
Net Profit 442 366
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.51 3.03
ROE 10.37 13.45
ROCE 13.44 15.4
Cash Conversion Cycle (days) 25.63 6

Valuation & price assessment

Q.1 Stock return of United Breweries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 7% 5.4% 0.9% -33.7%
Q.3 Valuation ratios of United Breweries Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 97.01 122.65 51.31
Price to Book 8.97 10.96 2.21
Price to Sales 2.27 2.67 1.53
EV to EBITDA 44.56 59.30 13.39

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