Overall Fundamental outlook

Business Operations:

Sector: Consumer Defensive
Industry: 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:

Revenue projections for UBL
Revenue projections for UBL

UBL's revenue is projected to decrease from last year, a development that could lead investors to adopt a more cautious approach. A revenue decline can negatively affect profitability, signaling challenges for the company and making it less attractive for those seeking solid financial performance.

Financial Ratios:

currentRatio 1.338000
forwardPE 57.225273
debtToEquity 17.864000
earningsGrowth -0.648000
revenueGrowth -0.030000
grossMargins 0.413930
operatingMargins 0.031950
trailingEps 13.930000
forwardEps 33.800000

UBL's current ratio of 1.338 indicates strong liquidity, meaning the company can comfortably meet its short-term debt obligations. This financial position reflects UBL's ability to use its cash reserves and current assets to cover liabilities without facing any cash flow issues.
UBL's high forward PE suggests the stock may be overvalued, which could prevent further price gains and lead to a correction. This parameter should be carefully evaluated in context with other fundamental data to ensure a balanced view.
UBL's low Debt-to-Equity ratio shows the company avoids heavy reliance on debt. This balanced approach reduces financial risk, as it maintains a healthy equity position without excessive leverage, providing greater financial stability and flexibility.
United Breweries Limited's low growth in earnings and revenue indicates a potential decline in profits. This suggests that the company could be facing financial challenges, making it harder to sustain its current profit margins.
UBL's negative gross and operating margins suggest that the company is experiencing losses at both the production and operational levels. This could point to inefficiencies or declining demand for its products.
UBL's forward EPS being higher than its trailing EPS indicates that the company is expected to achieve greater profitability this financial year. This suggests improving earnings and a stronger financial position compared to the previous year's performance.

Price projections:

Price projections for UBL
Price projections for UBL

Price projections for United Breweries Limited have been gradually reduced, reflecting growing uncertainty about the company's future performance. The downward revisions indicate analysts are lowering their expectations for United Breweries Limited's market trajectory.

Recommendation changes over time:

Recommendations trend for UBL
Recommendations trend for UBL


Analysts' mixed view on UBL leaves no strong buy or sell consensus, suggesting uncertainty in the stock's outlook. Investors may want to broaden their analysis to include additional market data to make more informed investment decisions.