United Breweries Ltd.
NSE: UBLUnited Breweries Ltd.: A 30-second snapshot
United Breweries (UBL) is India's largest beer company by volume, trading at ₹1,367.8 as of the run date, down 32.5% over 12 months and 35.9% below its 52-week high. The trailing PE of 87.4x is the highest among its 6-stock FMCG peer group, while profit margin stands at 4.39% and the company has not recorded a free-cash-flow-positive year in any tracked period. External headwinds include input cost inflation linked to global commodity pressures and state-level restrictions on price increases.
P/E
87.4
Forward P/E
46.6
ROE
—
Debt / Equity
29.08
Profit Margin
+4.4%
Div. Yield
+0.7%
5Y ROE > 15%
0/5
5Y FCF > 0
0/5
Quality
27/100
News
8 headlines · 4 positive · 4 negative
From Rs. 275 Crore to Zero: United Breweries Gets Relief in Sales Tax Dispute - Studycafe
Studycafe
United Breweries' ₹275-crore tax demand cut to zero by Maharashtra tribunal - MSN
MSN
United Breweries Ltd Faces Steep Cost Hikes, India Price Curbs - Whalesbook
Whalesbook
War-led cost surge, price curbs push beer industry into 'major trouble': United Breweries CEO & MD - The Economic Times
The Economic Times
United Breweries Ltd stock (INE069A01017): India beer major posts strong FY24 revenue growth - AD HOC NEWS
AD HOC NEWS
Recent context
- ·Maharashtra tribunal ruling (May 2026) cut a ₹275-crore sales tax demand to zero, a resolution of a legacy dispute that had represented a material contingent liability for the company.
- ·UBL's CEO described rising war-related input costs and state-level price curbs as pushing the beer industry into a period of significant operational stress; this framing appeared in multiple outlets in April 2026.
- ·Analyst coverage spans 19 analysts with a mean rating of 3.11 on a 1–5 scale (lower = more constructive), reflecting a wide divergence of views consistent with the uncertain operating environment.
Strengths
- +Forward PE compresses from 87.4x trailing to 46.6x, implying consensus earnings-estimate growth of approximately 88% is baked into sell-side models for the coming 12 months.
- +A ₹275-crore sales tax demand was reduced to zero by the Maharashtra tribunal (May 2026), removing a contingent liability that had been embedded in UBL's risk profile.
- +5-year earnings growth of 4.3% has been positive despite a 5-year revenue decline of -3.1%, indicating some degree of cost management or mix improvement at the operating level over the period.
- +Dividend yield of 0.73% is maintained, suggesting the company continues to distribute cash to shareholders even within a period of thin margins and rising debt.
Weaknesses
- −D/E of 29.1 with a rising debt trend and zero FCF-positive years in available history; the business has historically relied on external financing rather than internally generated cash to fund operations or investment.
- −Profit margin of 4.39% is among the thinner readings in the FMCG peer group; UBL's quality score of 25 ranks last of 6 peers (peer range 44–61), reflecting weak composite profitability and return metrics.
- −The CEO publicly characterised the industry environment as facing major trouble — simultaneous input cost inflation and government-imposed price caps create a structural constraint on margin recovery in the near term.
- −Stock has traded below both SMA50 and SMA200 with RSI at 28.3; the 200-DMA at ₹1,671.9 is 22.2% above current price, and no technical support levels were identified in the data — the prior 52-week high represents the nearest identified resistance cluster.
Open questions
- ?Does the compression from a trailing PE of 87.4x to a forward PE of 46.6x reflect achievable margin recovery, or does it depend on cost and regulatory assumptions that may not materialise?
- ?Has the D/E ratio of 29.1 been driven by working capital financing, acquisition debt, or operational losses — and what are the covenants or refinancing timelines on that debt?
- ?How much of UBL's revenue base and cost structure is exposed to state-level excise and pricing regulation, and which states represent the largest share of volume?
- ?Does the 5-year history of zero FCF-positive years reflect a structural characteristic of the Indian beer industry model, or is it specific to UBL's cost base and capital allocation decisions?
Peer comparison: FMCG
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| UBL | United Breweries Ltd.You're viewing | 87.4 | — | 25 |
| Industry avg | across 5 peers | 55.8 | +39.5% | 52 |
| NESTLEIND | Nestle India Ltd. | 78.8 | +76.3% | 61 |
| HINDUNILVR | Hindustan Unilever Ltd. | 50.2 | +21.6% | 58 |
| BRITANNIA | Britannia Industries Ltd. | 51.3 | +53.3% | 50 |
| TATACONSUM | Tata Consumer Products Ltd. | 79.4 | +6.9% | 45 |
| ITC | ITC Ltd. | 19.0 | — | 44 |
Technical state
Current price
₹1,367.80
SMA 50
₹1,522.20
SMA 200
₹1,671.92
RSI (14)
28.3 (oversold)
From 52w high
-35.9%
1Y return
-32.5%
3M return
-15.9%
50-DMA
Below
200-DMA
Below
Algorithmic resistance levels
Risk flags
- highD/E of 29.1 is far above the FMCG peer range (sector median typically below 1.0); debt trend is rising and FCF-positive years recorded = 0 of available history, indicating the business has not generated surplus cash across any tracked year.
- highStock is 35.9% below its 52-week high and down 32.5% over the past 12 months. Trading below both SMA50 (₹1,522.2, or 11.3% above current price) and SMA200 (₹1,671.9, or 22.2% above current price) with RSI at 28.3; no identified support levels in the data.
- highProfit margin of 4.39% is thin for a branded consumer staples company; 5-year revenue growth is negative (-3.1%) while 5-year earnings growth is 4.3%. ROE has not exceeded 15% in any tracked year (0 of available history). Consistency score of 11/100 reflects absence of durable profitability benchmarks.
- mediumUBL ranks 6th of 6 peers on both trailing PE (87.4x versus peer range 19.0–79.4x) and quality score (25 versus peer range 44–61), the lowest composite standing in its FMCG comparison group.
- mediumCEO and MD publicly described the beer industry as facing a war-led cost surge and government price curbs, characterised as a period of major trouble; cost inflation and regulated pricing represent a simultaneous margin squeeze.
Cross-section contradictions
- Trailing PE of 87.4x is the highest in the 6-stock FMCG peer group, yet UBL ranks last on quality score (25 vs peer range 44–61) and has no tracked year of ROE exceeding 15%, an atypical configuration of premium valuation alongside below-peer fundamentals.
- The stock is 35.9% below its 52-week high with RSI at 28.3 (oversold), yet news sentiment is evenly split 4 positive vs 4 negative, suggesting price action has moved well beyond what the news flow alone would explain.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days