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United Breweries Ltd

NSE: UBL BSE: 532478

1454.20

(-0.89%)

Sun, 19 Apr 2026, 08:51 am

United Breweries Analysis

dividend

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Pros

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    Cons

    • United Breweries is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
    • No need to calculate the sustainability of United Breweries's dividends as it is not paying a notable one for India.
    • No need to calculate the sustainability of United Breweries's dividends in 3 years as they are not expected to pay a notable one for India.
    • United Breweries is not paying a notable dividend for India, therefore no need to check if the payments are stable.
    • United Breweries's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
    • United Breweries's dividend is below the markets top 25% of dividend payers in India (3.08%).

    future

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    Pros

    • Cash flow for United Breweries is expected to increase by more than 50% in 2 years time.
    • United Breweries's earnings are expected to grow significantly at over 20% yearly.
    • United Breweries's earnings growth is expected to exceed the India market average.
    • United Breweries's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • United Breweries's earnings are expected to exceed the low risk growth rate next year.
    • United Breweries's net income is expected to increase by more than 50% in 2 years time.
    • Performance (ROE) is expected to be above the current IN Beverage industry average.
    • An improvement in United Breweries's performance (ROE) is expected over the next 3 years.
    • United Breweries's revenue growth is expected to exceed the India market average.
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    Cons

    • United Breweries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • United Breweries's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • United Breweries's revenue is expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).

    health

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    Pros

    • United Breweries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • United Breweries is profitable, therefore cash runway is not a concern.
    • United Breweries is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (68.9%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 8x debt.
    • United Breweries's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (51.3% vs 11.7% today).
    • Interest payments on debt are well covered by earnings (EBIT is 21.4x coverage).
    • United Breweries's level of debt (11.7%) compared to net worth is satisfactory (less than 40%).
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    Cons

    • High level of physical assets or inventory.

    management

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    Pros

    • The average tenure for the United Breweries board of directors is over 10 years, this suggests they are a seasoned and experienced board.
    • The tenure for the United Breweries management team is about average.
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    Cons

    • Shekhar's remuneration is higher than average for companies of similar size in India.
    • Shekhar's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.

    past

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    Pros

    • United Breweries's year on year earnings growth rate has been positive over the past 5 years.
    • United Breweries used its assets more efficiently than the IN Beverage industry average last year based on Return on Assets.
    • United Breweries has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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    Cons

    • United Breweries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • United Breweries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • United Breweries's 1-year earnings growth is negative, it can't be compared to the IN Beverage industry average.

    value

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    Pros

    • BSE:532478 is up 9.9% along with the Beverage industry (9.9%) over the past month.
    • BSE:532478 is up 9.9% outperforming the market in India which returned 8% over the past month.
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    Cons

    • United Breweries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • United Breweries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • United Breweries is overvalued based on assets compared to the IN Beverage industry average.
    • United Breweries is poor value based on expected growth next year.
    • United Breweries is overvalued based on earnings compared to the IN Beverage industry average.
    • United Breweries is overvalued based on earnings compared to the India market.
    • 532478 underperformed the Beverage industry which returned -1.3% over the past year.
    • 532478 underperformed the Market in India which returned -14.5% over the past year.

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