United Breweries Ltd - Stock Valuation and Financial Performance

BSE: 532478 | NSE: UBL | Breweries & Distilleries | Mid Cap

United Breweries Share Price

1,736.35 -2.50 -0.14%
as on 18-Mar'24 16:59

DeciZen - make an informed investing decision on United Breweries

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Semi Strong

United Breweries stock performance -

mw4me loader
P/E Ratio (CD):
135.05
Market Cap:
45,732.8 Cr.
52-wk low:
1,342.3
52-wk high:
1,913.5

Is United Breweries Ltd an attractive stock to invest in?

1. Is United Breweries Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that United Breweries Ltd is a average quality company.

2. Is United Breweries Ltd undervalued or overvalued?

The key valuation ratios of United Breweries Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is United Breweries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of United Breweries Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of United Breweries:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
United Breweries Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 9.8%11.1%13.6%9.2%14.4%18.3%12.6%2.3%9.6%7.7%-
Value Creation
Index
-0.10.00.2-0.20.30.60.1-0.8-0.2-0.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4,2304,6884,8334,7295,6196,4756,5094,2435,8387,50017,672
Sales YoY Gr.-10.8%3.1%-2.2%18.8%15.2%0.5%-34.8%37.6%28.5%-
Adj EPS 8.69.812.48.71521.316.32.713.711.412.8
YoY Gr.-15.1%25.8%-29.9%72.2%42.5%-23.6%-83.2%402.9%-17.2%-
BVPS (₹) 61.87081.288.3101.8120.4133.1135.5148.8150155.1
Adj Net
Profit
22626032722939556343172.2363301339
Cash Flow from Ops. 290841539544563643508620900-120-
Debt/CF from Ops. 4.311.51.10.60.30.50.400-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 6.6%5.9%4.8%28.5%
Adj EPS 3.2%-5.3%-11.3%-17.2%
BVPS10.4%8.1%4.1%0.8%
Share Price 8% 4.7% 12.5% 20.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
1414.616.410.215.719.212.929.77.68.4
Op. Profit
Mgn %
14.113.315.213.616.117.613.5911.98.23.4
Net Profit
Mgn %
5.45.66.84.978.76.61.76.241.9
Debt to
Equity
0.70.50.40.30.10.10.10.100-
Working Cap
Days
96888490808185122897841
Cash Conv.
Cycle
4942282923232330171716

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 8.40%

Sales growth has been subdued in last 3 years 4.84%

Net Profit has been subdued in last 3 years -11.30%

Sales growth is not so good in last 4 quarters at 9.67%

Latest Financials - United Breweries Ltd.

Standalone Consolidated
TTM EPS (₹) 12.8 12.8
TTM Sales (₹ Cr.) 17,665 17,672
BVPS (₹.) 154.9 155.1
Reserves (₹ Cr.) 4,069 4,073
P/BV 11.17 11.15
PE 135.19 135.05
From the Market
52 Week Low / High (₹) 1342.25 / 1913.50
All Time Low / High (₹) 6.97 / 1913.50
Market Cap (₹ Cr.) 45,733
Equity (₹ Cr.) 26.4
Face Value (₹) 1
Industry PE 69.6

Management X-Ray of United Breweries:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *14.4514.4514.4514.4514.9714.9714.4514.4512.3812.40
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of United Breweries

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales4,2304,6884,8334,7295,6196,4756,5094,2435,8387,500
Operating Expenses 3,6324,0664,1404,0874,7175,3375,6333,8625,1426,884
Manufacturing Costs1,3271,4481,6861,6281,8582,2442,2571,5302,1233,125
Material Costs6617227608241,0901,1551,2787391,1321,626
Employee Cost 263301339356399448504485523596
Other Costs 1,3821,5951,3561,2801,3701,4891,5941,1081,3641,538
Operating Profit 5976226936429021,138876381697616
Operating Profit Margin (%) 14.1%13.3%14.3%13.6%16.1%17.6%13.5%9.0%11.9%8.2%
Other Income 1538865213329503049
Interest 8073815948313123155
Depreciation 198208244287260260285232217211
Exceptional Items 0000000-70-33
Profit Before Tax 335379455348608879569169494417
Tax 10911915611821331614156128113
Profit After Tax 226260299230395563428114366305
PAT Margin (%) 5.4%5.6%6.2%4.9%7.0%8.7%6.6%2.7%6.3%4.1%
Adjusted EPS (₹)8.59.711.38.714.921.316.24.313.811.5
Dividend Payout Ratio (%)11%10%10%13%13%12%15%12%76%65%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1,7071,8512,1472,3342,6903,1843,5203,5823,9353,965
Share Capital 101262626262626262626
Reserves 1,6061,8242,1212,3082,6643,1573,4943,5563,9093,938
Minority Interest2233333445
Debt1,0166994713962588116910800
Long Term Debt52851225818420575910800
Short Term Debt489188213212536160000
Trade Payables210343418460522590545629638717
Others Liabilities 9639901,3281,2861,2511,5261,4611,5621,4661,669
Total Liabilities 3,8983,8854,3664,4794,7235,3845,6995,8856,0436,356

Fixed Assets

Gross Block2,8403,2503,4723,6813,8974,1054,5314,7764,9395,105
Accumulated Depreciation1,2071,4141,6501,9312,1672,3272,6052,8273,0273,221
Net Fixed Assets1,6321,8361,8221,7501,7301,7771,9261,9491,9131,884
CWIP 8290611377219019912911077
Investments 0000000688
Inventories5445596887518081,0321,0941,1379361,428
Trade Receivables9599641,1191,2951,4991,5111,3501,3951,2551,407
Cash Equivalents 143131424244679469910395
Others Assets5384226625215908271,0518009111,156
Total Assets 3,8983,8854,3664,4794,7235,3845,6995,8856,0436,356

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 290841539544563643508620900-120
PBT 335379455348608879569169494417
Adjustment 271266322337335264349236236219
Changes in Working Capital -216338-782-127-110-220298299-616
Tax Paid -101-142-160-144-253-390-190-82-130-140
Cash Flow From Investing Activity -158-329-245-234-197-430-402-152-160-121
Capex -212-407-243-235-201-437-403-150-173-154
Net Investments 5169-4-12-1-1-6-20
Others 382327251534
Cash Flow From Financing Activity -172-572-297-301-364-196-95-88-287-292
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -1-94-211-211-123-54-138166-255-10
Interest Paid -80-72-79-58-51-31-27-28-18-5
Dividend Paid -24-30-26-24-25-53-66-66-13-278
Others -68-37520-7-165-58136-16000
Net Cash Flow -40-60-3931710380453-533
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)14.7514.9414.9410.2615.7119.1812.783.219.747.71
ROCE (%)14.4216.061913.8322.128.4616.745.0513.1110.68
Asset Turnover Ratio1.92.122.342.312.72.82.641.762.22.69
PAT to CFO Conversion(x)1.283.231.82.371.431.141.195.442.46-0.39
Working Capital Days
Receivable Days45433943413936493729
Inventory Days27242426232426402926
Payable Days120138182194164176162290204152

United Breweries Ltd Stock News

United Breweries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of United Breweries on 18-Mar-2024 16:59 is ₹1,736.4.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 18-Mar-2024 16:59 the market cap of United Breweries stood at ₹45,732.8.
The latest P/E ratio of United Breweries as of 18-Mar-2024 16:59 is 135.2.
The latest P/B ratio of United Breweries as of 18-Mar-2024 16:59 is 11.17.
The 52-week high of United Breweries is ₹1,913.5 and the 52-week low is ₹1,342.3.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of United Breweries is ₹17,665 ( Cr.) .

About United Breweries Ltd

In 1915, the foundation of Good Times was laid with the coming together of 5 breweries in South India. The company’s beer business has shown strong growth and it is the undisputed king of the Indian beer market. United Breweries Limited is synonymous with innovation and aggressive marketing that is complemented by a strong distribution network which encompasses an impressive spread of owned and contract manufacturing facilities across the country. The company’s flagship brand 'Kingfisher', has achieved international recognition consistently, and has won many awards at international beer festivals. It’s most popular beer, Kingfisher Premium Lager beer, is currently available in many countries and leads the way among Indian beers in the international market.

Business area of the company

The company is into breweries business. It is among the largest beer company.

Products

Alcoholic Brands

  • Kingfisher Premium
  • Kingfisher Strong
  • Kingfisher Ultra
  • Kingfisher Ultra Max
  • Kingfisher Ultra Witbier
  • Kingfisher Storm
  • Kingfisher Blue
  • Heineken
  • Amstel Bier
  • Sol
  • Affligem
  • Edelweiss
  • Desperados
  • Bullet
  • Cannon 10000
  • Zingaro
  • Kalyani Black Label
  • UB Export
  • UB Export Strong
  • London Pilsner
  • London Pilsner Strong

Non-Alcoholic Brands

  • Kingfisher Radler Lemon
  • Kingfisher Radler Mint & Lime
  • Kingfisher Radler Ginger & Lime
  • Kingfisher Premium Packaged Drinking Water
  • Kingfisher Strong Power Soda
  • Kingfisher Storm Strong Soda
  • Kingfisher Ultra Non-Alcoholic
  • Heineken 0.0
  • Amstel Malt Classic Non-Alcoholic

Awards

2017:

  • UBl Chennai received the prestigious safety management award for the year 2017 from Govt. of Tamil Nadu.
  • UBL Chamundi received two award first place from CII-EHS for 2017-18 and CII – Excellence in EHS with five star rating for 2017-18.

2018:

  • UBL Chennai & UBL Kuthambakkam were awarded 3-star ratings from the CII for Excellence in EHS.
  • UBL Chamundi has been awarded a 4-star rating from the CII for Excellence in EHS.
  • UBL Palakkad was awarded the 1st place by the Kerala State Pollution Control Board for Best Environment Initiatives in the large-scale Industries category.

2019:

  • UBL Palakkad was awarded for its good safety system practice by the Kerala State Factories & Boilers in large-scale industries for the year 2019.
  • UBL Chamundi won the Platinum award the Platinum award at the 18th annual Genentech Safety function 2019.
  • UBL Srikakulam was awarded a three-star rating in appreciation to EHS practices at the CII-SR EHS Excellence Awards 2019.
  • UBL Mangalore won the Green Award - 2019 from the KSPCB.
  • Kingfisher Storm produced by its brewery at Srikakulam won the award “The Country’s Best” in World Beer Awards 2019, at United Kingdom.
  • Brewery in Alwar, Rajasthan was bestowed with Bhamashah Award “Shiksha Bhushan” for the 5th consecutive year for exemplary work in the field of education under its CSR programme.
  • Breweries in Tamilnadu received awards from Tiruvallur District Collector under “CSR MUMMARI SCHEME (Water Rejuvenation Project)” for its CSR activity.

Milestones

  • 1915: United Breweries (UB) forays into brewing with 5 breweries in South India.
  • 1944: First bottled beer is created under the label 'Exports Beer'.
  • 1948: Mr. Vittal Mallya becomes first Chairman.
  • 1950: Bangalore is made headquarters.
  • 1960: Kalyani Breweries is set up in Kalyani, West Bengal.
  • 1965: Kesarwal Beverages is set up in Goa.
  • 1974: High Range Breweries is set up in Cherthala in Kerala.
  • 1974: UB brand is exported to Aden and Middle East.
  • 1978: Punjab Breweries is set up in Ludhiana, Punjab.
  • 1978: Kingfisher Premium is launched.
  • 1981: Kingfisher canned beer is launched.
  • 1982: Kingfisher Lager is launched in the UK & USA.
  • 1983: Dr. Vijay Mallya becomes Chairman.
  • 1993: Punjab Breweries, High Range Breweries, Kalyani Breweries & Kesarval Beverages get amalgamated into UB.
  • 1994: Premier Breweries gets amalgamated into UB.
  • 1996: Bombay Breweries is acquired.
  • 1999: Kingfisher Strong is launched.
  • 2000: Associated Breweries and Mangalore Breweries are acquired.
  • 2001: Inertia Industries (name changed to Millennium Beer) gets acquired.
  • 2001: Scheme of arrangement for separating brewery business into a new entity is introduced.
  • 2002: Enters a Joint Venture with Scottish & Newcastle UK and McDowell Alcobev Ltd. (name since changed to Millennium Alcobev Pvt. Ltd. – MAPL).
  • 2002: MAPL acquires GMR Beverages, Empee Breweries. GMR, Empee and Millennium Beer become subsidiaries of MAPL.
  • 2005: UB enters into strategic alliance with Scottish & Newcastle. Scottish & Newcastle acquires equity shares of UB and becomes an equal promoter.
  • 2005: Brewery business of Associated Breweries gets demerged into UB and Mangalore Breweries is amalgamated into UB. Associated Breweries continues to hold investments and remains a subsidiary of UB.
  • 2006: Karnataka Breweries is acquired.
  • 2006: Karnataka Breweries, London Pilsner Breweries and London Draft Pubs is amalgamated into UB.
  • 2007: Greenfield breweries in Chopanki, Rajasthan and Khurda, Odisha commence operations.
  • 2008: Kingfisher Blue is launched.
  • 2009: Heineken NV acquires control over Scottish & Newcastle, and Heineken becomes promoter of UB.
  • 2009: Kingfisher Ultra is launched.
  • 2010: Greenfield brewery in Sangareddy District, Andhra Pradesh, commences operations.
  • 2010: Heineken breweries in India come under the Management of UB.
  • 2010: MAPL and four breweries of MAPL subsidiaries are amalgamated into UB.
  • 2010: Associated Breweries and UB Nizam Breweries are amalgamated into UB.
  • 2011: UB Ajanta Breweries and Chennai Breweries are amalgamated into UB.
  • 2012: Greenfield Brewery in Nanjungud, Karnataka, commences operations.
  • 2012: Heineken is brewed by UB in India.
  • 2012: Scottish & Newcastle India is amalgamated into UB.
  • 2014: UB acquires brewery assets i.e. land, building, plant and equipment in Shahjahanpur, Rajasthan.
  • 2015: Greenfield Brewery in Naubatpur, Patna, Bihar commences operations.
  • 2015: Kingfisher Ultra Max is launched.
  • 2016: Kingfisher Buzz is launched.
  • 2017: Kingfisher Storm is launched.
  • 2018: Kingfisher Radler is launched.
  • 2018: Kingfisher forays into the non-alcoholic segment.
  • 2018: Completed a comprehensive 3600 machine guard audit for all the breweries to ensure high levels of safety when working on machines and moving parts.
  • 2019: Ultra Max achieves one million cases.
  • 2019: Kingfisher Ultra Draught is launched.
  • 2020: UB Export signed Sandalwood superstar Rakshit Shetty.
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