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Fundamentals for United Breweries Limited
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Fundamentals for United Breweries Limited
Business Operations:
Sector: Consumer DefensiveIndustry: Beverages - Brewers
United Breweries Limited engages in manufacture, purchase, and sale of beer and non-alcoholic beverages in India and internationally. The company offers beer products under the Heineken, Heineken Silver, Kingfisher Premium, Kingfisher Strong, Kingfisher Ultra, Kingfisher Ultra Max, Kingfisher Ultra Witbier, Amstel Bier, Bullet, Bullet Super Strong, Cannon 10000, Zingaro, Kingfisher Storm, Kingfisher Blue, Kalyani Black Label, UB Export Large, UB Export Strong, London Pilsner, and London Pilsner Strong brands; and non-alcoholic products under the Kingfisher Premium Packaged Drinking Water, Kingfisher Strong Power Soda, Kingfisher Storm Strong Soda, Kingfisher Ultra Non-Alcoholic, and Heineken 0.0. It also licenses its brands; and offers contract manufacturing services. The company was founded in 1915 and is based in Bengaluru, India. United Breweries Limited operates as a subsidiary of Heineken N.V.
Revenue projections:
With UBL's revenues expected to fall below the previous year's, investors are likely to approach the stock with caution. Declining revenues can negatively affect profitability, which makes it harder for the company to maintain investor confidence and perform well in the market.
Financial Ratios:
| currentRatio | 1.237000 |
|---|---|
| forwardPE | 45.417507 |
| debtToEquity | 29.076000 |
| earningsGrowth | 0.043000 |
| revenueGrowth | -0.031000 |
| grossMargins | 0.440520 |
| operatingMargins | 0.028070 |
| trailingEps | 15.640000 |
| forwardEps | 29.257440 |
A current ratio of 1.237 for UBL implies that the company has ample liquidity to meet its short-term debts. UBL's cash reserves and current assets should easily cover these obligations, highlighting its financial stability and ability to manage short-term liabilities.
UBL's low Debt-to-Equity ratio highlights its minimal reliance on debt, showing that the company is not over-leveraged. This contributes to lower financial risk and greater stability, giving UBL a stronger position in managing its financial obligations.
United Breweries Limited's low earnings and revenue growth point to a likely decrease in profits. This suggests that the company is facing financial difficulties and may struggle to maintain its current level of profitability.
UBL's negative gross and operating margins indicate that the company is unable to generate profit from its core business activities. This suggests financial strain and could be a sign of deeper cost management issues.
United Breweries Limited's forward EPS exceeding its trailing EPS means that the company is expected to increase profitability in the current financial year. This reflects improved earnings potential, signaling that United Breweries Limited is likely to outperform its previous year's financial performance.
Price projections:
The price of UBL has consistently been close to the lower limit of expectations. This trend may point to challenges in the company's performance, leading to concerns about its future growth potential.
Recommendation changes over time:
The analysts' sell bias for United Breweries Limited suggests caution for investors, but it's essential to make decisions based on a wide array of market indicators. This approach ensures a comprehensive view of United Breweries Limited's position, helping to navigate any potential risks more effectively.
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