Showing posts with label United Breweries Share Price. Show all posts
Showing posts with label United Breweries Share Price. Show all posts

Sunday, January 11, 2026

United Breweries (UBL) Hits 52-Week Low at ₹1533: Time to Buy Kingfisher's Dip?

United Breweries (UBL) just hit a 52-week low at ₹1533. Ouch. Kingfisher's parent company is hurting, but is this the dip retail investors like you should buy?

Why the Price Crash?
Bad quarterly numbers kicked it off. Latest Q2 FY26 showed net profit down 65% YoY to ₹46 crore, sales dipped 3%. Blame higher costs, maybe weak demand in some states. Stock's fallen 24% in a year while Nifty FMCG holds up. Kinda reminds me of that time gold dipped hard before bouncing—temporary pain?

Market cap sits around ₹41,000 crore. 
P/E ratio? A steep 108-112 times, way above industry peers at 36-54 for breweries. 
Dividend yield's decent at 0.65%, pays ₹10 last time. 
Debt's low—₹575 crore total, debt-to-equity just 0.13. Solid, no big red flag there. 
ROE around 10-11%, ROCE 14%. Not stellar, but steady. 
Cash flow from ops was ₹235 crore last year, positive after some rough patches. Profit growth? TTM down 20%, 3-year at 8%. 

Started in 1915 by Scotsman Thomas Leishman, merging old breweries like Castle and Nilgiris. Vittal Mallya took over in 1948, built the empire. His son Vijay made Kingfisher iconic—remember those calendar girls? Now Heineken owns 42% stake since 2010s.

UBL brews and sells beer, rules 50%+ of India's premium market. Kingfisher Premium, Ultra, Strong—every pub's got 'em. Heineken, Bulmers too. Non-alco like fizz drinks on side. Business? Manufacture, distribute via states (alcohol rules are messy). Volumes up long-term, but margins squeezed by taxes, raw stuff like barley.

At ₹1533, it's cheap vs ₹2300 peak. Low debt helps weather storms. But high P/E screams caution—overvalued if profits don't grow. Youth loving craft beers could boost, plus new launches like Heineken Silver. Still, regulations bite.Predictions vary. 2026 end: ₹2800-2900 if recovery hits. 
2030: ₹6500, riding premium shift. 
2035? Push to ₹10,000+ if India drinks more fancy stuff. 
2040: Wild guess ₹4500-5000.
These numbers are my wildest guesses. Do not trust them blindly.



Thursday, December 18, 2025

United Breweries Share Price: Latest 52-Week Low, Key Levels and Outlook.

United Breweries' shares just hit a fresh 52-week low around ₹1,613, shaking up investors who watched Kingfisher's maker slide nearly 11% in a month. Why the tumble? Weak quarterly profits down 60% to ₹46 crore, sluggish sales from a brutal monsoon, and higher taxes in states like Karnataka crushed demand—think fewer cold ones at summer parties. 

Scotsman Thomas Leishman kicked things off in 1915 by merging five South Indian breweries, including Castle and Nilgiris from 1857. Vittal Mallya, just 22, joined as the first Indian director in 1947 and took the chairman's chair a year later, shifting headquarters to Bangalore. Fast-forward, Heineken grabbed majority control at 61.5%, while the Mallya family's UB Group holds about 13%.

United Breweries dominates India's beer scene with over 50% market share, churning out 21 million hectoliters yearly from 11 breweries. Their model? Brew premium lagers and craft options, then push through 1,200+ distributors to bars, stores, and events nationwide. Kingfisher Premium alone drives 40% of sales, alongside Heineken, Amstel, Ultra, and even non-boozy Radler for sober crowds—revenue hit ₹9,240 crore last year, though profits dipped to ₹367 crore. 

Blame it on earnings flops: Q2 profit cratered amid 3.4% volume drop overall, despite premium sales jumping 17%. The stock's below all key averages—5-day to 200-day—signaling bearish vibes, with delivery volumes tanking 77%. At ₹1,625 recently (down 0.27% that day), it's testing support near ₹1,616 low, while the 52-week high was ₹2,300. Bearish short-term, but low debt and past 96% five-year gains hint at rebound potential. 

Projections vary wildly since markets love surprises—recent analyst averages peg one-year at ₹1,916, but bullish forecasts see 2026 ending at ₹2,833 if premiumization accelerates. By 2030? Optimists eye ₹6,543 amid rising craft beer demand and exports. Stretch to 2035 or 2040? No firm numbers yet; could double or more with 12% annual revenue growth, but taxes and competition cloud it—honestly, long-haul bets hinge on India's party economy booming.