United Breweries Ltd Stock Analysis

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

BSE Share Price 06-Feb-2023 18:01
1588.75 11.00 (0.70%)

DeciZen - Make an Informed Decision on United Breweries

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Semi Strong

United Breweries Price Chart

P/E Ratio ( CD) :
76.46
Market Cap :
42,007.4 Cr.
52-wk low :
1,274.6
52-wk high :
1,805
Bole Toh?

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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 8.8%9.8%11.1%13.6%9.2%14.4%18.3%12.6%2.3%9.6%-
Value Creation Index -0.4-0.1-0.00.2-0.20.30.60.1-0.8-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3,8994,2304,6884,8334,7295,6196,4756,5094,2435,83816,046
YoY Gr. Rt. %-8.5%10.8%3.1%-2.2%18.8%15.2%0.5%-34.8%37.6%-
Adj EPS 6.58.69.812.48.71521.316.32.713.720.8
YoY Gr. Rt. %-30.9%15.1%25.8%-29.9%72.2%42.5%-23.6%-83.2%402.9%-
BVPS (₹) 54.461.87081.288.3101.8120.4133.1135.5148.8149.6
Adj Net Profit 17322626032722939556343172.2363550
Cash Flow from Ops. 152290841539544563643508620900-
Debt/CF from Ops. 8.64.311.51.10.60.30.50.40-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4.6%4.3%-3.4%37.6%
Adj EPS 8.6%9.6%-13.6%402.9%
BVPS 11.8117.39.9
Share Price 7.6% 7.7% 6.4% -0.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 121414.616.410.215.719.212.929.714
Op. Profit Mgn % 12.314.113.315.213.616.117.613.5911.95.7
Net Profit Mgn % 4.45.45.66.84.978.76.61.76.23.4
Debt to Equity 0.90.70.50.40.30.10.10.10.100
Working Cap Days 96968884908081861228985
Cash Conv. Cycle 4149422829232323301736

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 13.90%

Sales growth is good in last 4 quarters at 30.81%

Sales growth has been subdued in last 3 years -3.39%

Net Profit has been subdued in last 3 years -13.63%

Latest Financials - United Breweries Ltd.

Standalone Consolidated
TTM EPS (₹) 20.8 20.8
TTM Sales (₹ Cr.) 16,037 16,046
BVPS (₹.) 149.4 149.6
Reserves (₹ Cr.) 3,924 3,928
P/BV 10.63 10.64
PE 76.46 76.46
From the Market
52 Week Low / High (₹) 1274.60 / 1805.00
All Time Low / High (₹) 6.97 / 1805.00
Market Cap (₹ Cr.) 42,007
Equity (₹ Cr.) 26.4
Face Value (₹) 1
Industry PE 56.6

Management X-Ray of United Breweries :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *18.2018.2018.2014.4514.4514.4514.4514.4514.9714.97
* 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 (%)

News

United Breweries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of United Breweries on 06-Feb-2023 18:01 is : 1,588.8.
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 06-Feb-2023 18:01 the market cap of United Breweries stood at ₹ 42,007.4.
The latest PE ratio of United Breweries as of 06-Feb-2023 18:01 is 76.46.
The latest PB ratio of United Breweries as of 06-Feb-2023 18:01 is 10.63
The 52-week high of United Breweries is ₹ 1,805 and the 52-week low is ₹ 1,274.6.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of United Breweries is ₹ 16,037 ( 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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