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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of United Breweries Ltd

About the Company - United Breweries Ltd

United Breweries Ltd. is a Public Limited Listed company incorporated on 13/05/1999 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L36999KA1999PLC025195 and registration number is 025195. Currently Company is involved in the business activities of Manufacture of beer. Company’s Total Operating Revenue is Rs. 5831.93 Cr. and Equity Capital is Rs. 26.44 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Beverages & DistilleriesUB TOWER, UB City, No 24, Vittal Mallya Road, Bengaluru Karnataka 560001ublinvestor@ubmail.com
http://www.unitedbreweries.com
Management
NamePosition Held
Mr. Radovan SikorskyDirector & CFO
Mr. Anand Thirumalachar KripaluIndependent Director
Ms. Kiran Mazumdar ShawIndependent Director
Ms. Geetu Gidwani VermaIndependent Director
Mr. Manu AnandIndependent Director
Mr. Subramaniam SomasundaramIndependent Director
Mr. Christiaan A J Van SteenbergenNon Executive Director
Mr. Jan Cornelis van der LindenNon Executive Director

United Breweries Ltd. Share Price Update

Share PriceValue
Today₹1,701.35
Previous Day₹1,714.75

Basic Stock Data of United Breweries Ltd

Market Cap 45,342 Cr.
Current Price 1,715
High / Low1,914/1,342
Stock P/E134
Book Value 152
Dividend Yield0.44 %
ROCE11.4 %
ROE8.27 %
Face Value 1.00

Data Source: screener.in

Competitors of United Breweries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Tilaknagar Industries Ltd 4,256 Cr. 221291/95.531.7 29.60.11 %15.5 %23.9 % 10.0
Radico Khaitan Ltd 21,391 Cr. 1,6001,885/1,06990.6 1680.18 %11.6 %9.82 % 2.00
United Spirits Ltd 83,740 Cr. 1,1511,180/73165.9 93.60.34 %20.0 %17.5 % 2.00
Som Distilleries & Breweries Ltd 2,047 Cr. 264390/11224.9 66.50.10 %15.6 %18.1 % 5.00
Industry Average27,858.50 Cr809.0053.2889.430.18%15.68%17.33%4.75

United Breweries Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,2911,5451,1191,4271,5831,7092,4391,6821,6131,7662,2751,8901,824
Expenses1,1171,2821,0241,2621,4091,4482,1731,4631,5361,7122,0521,7061,678
Operating Profit174262961651742612662197754223184146
OPM %14%17%9%12%11%15%11%13%5%3%10%10%8%
Other Income60-51646131014-2012101225
Interest5445421121212
Depreciation58625556535358525051515152
Profit before tax17114543109124219218181513180144117
Tax %26%33%27%27%26%25%26%26%135%27%24%26%27%
Net Profit12798318091164162134-21013610786
EPS in Rs4.793.671.173.043.436.186.135.07-0.070.375.154.063.23

United Breweries Ltd Quarterly Chart

United Breweries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,5593,8994,2304,6884,8334,7295,6196,4756,5094,2435,8387,5007,755
Expenses3,1673,4213,6324,0664,1364,0874,7165,3375,6333,8625,1426,8847,148
Operating Profit3934785976226976429031,138876381697616607
OPM %11%12%14%13%14%14%16%18%13%9%12%8%8%
Other Income7338153782521332943301659
Interest988080738159483131231556
Depreciation149170198208244287260260285232217211205
Profit before tax218266335379455348608879569169494417455
Tax %42%35%32%31%34%34%35%36%25%33%26%27%
Net Profit127173226260299230395563428114366305339
EPS in Rs4.796.518.559.8311.288.6814.9121.2916.184.2813.8211.5012.81
Dividend Payout %15%11%11%10%10%13%13%12%15%12%76%65%

United Breweries Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)36.22%30.64%15.04%15.00%-23.08%71.74%42.53%-23.98%-73.36%221.05%-16.67%
Change in YoY Net Profit Growth (%)0.00%-5.58%-15.59%-0.04%-38.08%94.82%-29.21%-66.51%-49.39%294.42%-237.72%

United Breweries Ltd Growth

Compounded Sales Growth
10 Years:7%
5 Years:6%
3 Years:5%
TTM:4%
Compounded Profit Growth
10 Years:7%
5 Years:-4%
3 Years:-9%
TTM:-31%
Stock Price CAGR
10 Years:8%
5 Years:5%
3 Years:13%
1 Year:20%
Return on Equity
10 Years:12%
5 Years:10%
3 Years:7%
Last Year:8%

United Breweries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital26262626262626262626262626
Reserves1,2651,4111,6061,8242,1212,3082,6643,1573,4943,5563,9093,9383,988
Preference Capital747474000000000
Borrowings9921,3011,232836806594312211252262101615
Other Liabilities1,0051,0021,0331,1981,4131,5501,7211,9891,7782,0082,0042,3002,343
Total Liabilities3,2883,7403,8983,8854,3664,4794,7235,3845,5515,8525,9496,2806,372
Fixed Assets1,2441,6191,6321,8361,8221,7501,7301,7771,9261,9491,9131,8511,799
CWIP2071148290611377219019912911077134
Investments0000000006888
Other Assets1,8372,0072,1831,9592,4832,5912,9213,4173,4253,7683,9184,3444,431
Total Assets3,2883,7403,8983,8854,3664,4794,7235,3845,5515,8525,9496,2806,372

United Breweries Ltd Reserves and Borrowings Chart

United Breweries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 188152290841539544563643508620900-120
Cash from Investing Activity -334-428-158-329-245-234-197-430-402-152-160-121
Cash from Financing Activity 205211-172-572-297-301-364-196-95-88-287-292
Net Cash Flow59-64-40-60-3931710380453-533

United Breweries Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days72768375841009785761207868
Inventory Days261304301283330333271326312561302321
Days Payable250148116173200204175186156311206161
Cash Conversion Cycle83232268184214229193225232370174228
Working Capital Days597367383750574959743150
ROCE %14%13%14%16%18%14%22%28%17%5%13%11%

United Breweries Ltd Financial Efficiency Indicators Chart

United Breweries Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters57.72%72.71%72.71%72.71%72.71%72.71%72.72%72.72%72.72%72.72%71.00%70.84%
FIIs9.75%9.80%9.78%9.61%8.70%7.69%6.93%6.94%6.43%6.31%6.70%6.71%
DIIs10.16%10.10%10.49%10.90%11.92%13.01%13.87%13.91%14.41%14.65%15.97%16.06%
Government16.15%1.16%1.16%1.16%1.16%1.16%1.16%1.16%1.16%1.16%1.16%1.16%
Public6.22%6.23%5.86%5.62%5.51%5.43%5.32%5.28%5.27%5.16%5.19%5.22%
No. of Shareholders60,19866,13363,30166,55666,55964,67563,57661,76063,47569,38467,95465,418

United Breweries Ltd Shareholding Pattern Chart

No. of United Breweries Ltd Shareholders

United Breweries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Equity Hybrid Fund29836520.83539.47
SBI Multicap Fund27000003.33488.19
ICICI Prudential Bluechip Fund26206410.95473.84
Kotak Flexicap Fund - Regular Plan23955150.97433.13
Nippon India Growth Fund17000001.26307.38
SBI Magnum Global Fund17000004.72307.38
ICICI Prudential Balanced Advantage Fund13071680.44236.35
SBI Flexi Cap Fund12918951.16233.59
Franklin India Flexi Cap Fund12000001.53216.97
ICICI Prudential Multi Asset Fund11702530.64211.59

United Breweries Ltd ROCE Trend

United Breweries Ltd EPS Trend

United Breweries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)11.5013.824.2816.1821.29
Diluted EPS (Rs.)11.5013.824.2816.1821.29
Cash EPS (Rs.)19.4922.0613.0826.9831.13
Book Value[Excl.RevalReserv]/Share (Rs.)150.13148.99135.63133.27120.53
Book Value[Incl.RevalReserv]/Share (Rs.)150.13148.99135.63133.27120.53
Revenue From Operations / Share (Rs.)283.66220.82160.48246.19244.91
PBDIT / Share (Rs.)25.1827.4716.3133.4844.27
PBIT / Share (Rs.)17.2119.267.5422.6934.44
PBT / Share (Rs.)15.7818.706.4121.5233.26
Net Profit / Share (Rs.)11.5213.854.3116.2021.31
NP After MI And SOA / Share (Rs.)11.5013.824.2816.1821.29
PBDIT Margin (%)8.8712.4410.1613.5918.07
PBIT Margin (%)6.068.724.699.2114.06
PBT Margin (%)5.568.463.998.7413.57
Net Profit Margin (%)4.066.272.686.578.69
NP After MI And SOA Margin (%)4.056.252.666.578.69
Return on Networth / Equity (%)7.669.283.1612.1517.68
Return on Capital Employeed (%)11.3612.815.3616.8527.71
Return On Assets (%)4.846.141.937.7010.45
Long Term Debt / Equity (X)0.000.000.030.000.02
Total Debt / Equity (X)0.000.000.030.040.02
Asset Turnover Ratio (%)1.230.980.741.191.28
Current Ratio (X)1.621.711.551.491.43
Quick Ratio (X)0.991.241.020.930.93
Inventory Turnover Ratio (X)3.582.621.772.803.18
Dividend Payout Ratio (NP) (%)91.333.6158.3815.459.39
Dividend Payout Ratio (CP) (%)53.952.2619.149.276.42
Earning Retention Ratio (%)8.6796.3941.6284.5590.61
Cash Earning Retention Ratio (%)46.0597.7480.8690.7393.58
Interest Coverage Ratio (X)143.4649.1519.0328.4437.51
Interest Coverage Ratio (Post Tax) (X)73.8025.776.3414.7619.05
Enterprise Value (Cr.)37283.6838458.3332477.7824357.7936926.07
EV / Net Operating Revenue (X)4.976.597.653.745.70
EV / EBITDA (X)56.0152.9475.3027.5231.55
MarketCap / Net Operating Revenue (X)5.026.747.743.735.70
Retention Ratios (%)8.6696.3841.6184.5490.60
Price / BV (X)9.5010.009.166.8911.59
Price / Net Operating Revenue (X)5.026.747.743.735.70
EarningsYield0.010.010.000.010.01

United Breweries Ltd Profitability Ratios (%)

United Breweries Ltd Liquidity Ratios

United Breweries Ltd Liquidity Ratios (%)

United Breweries Ltd Interest Coverage Ratios (X)

United Breweries Ltd Valuation Ratios

Fair Value / Intrinsic Value of United Breweries Ltd

Fair Value: ₹1691.85

The stock is overvalued by 1.35% compared to the current price ₹1715

*Investments are subject to market risks

Strength and Weakness of United Breweries Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 15.42%, which is a positive sign.
  2. The company has higher reserves (2,710.85 cr) compared to borrowings (17.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (4.77 cr) and profit (430.15 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 20.23 and average Dividend Yield of 8.55%.
  2. The stock has a high average Working Capital Days of 53.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 219.33, which may not be favorable.

Should I Buy United Breweries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in United Breweries Ltd:
    1. Net Profit Margin: 4.06%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.36% (Industry Average ROCE: 15.68%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 73.80
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.99
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 134 (Industry average Stock P/E: 53.28)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.00
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in United Breweries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE