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Last Updated on: 11 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

United Breweries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 11, 2024, 10:43 pm

Market Cap 55,174 Cr.
Current Price 2,086
High / Low2,205/1,541
Stock P/E123
Book Value 158
Dividend Yield0.48 %
ROCE13.5 %
ROE10.1 %
Face Value 1.00
PEG Ratio3.89

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for United Breweries Ltd

Competitors of United Breweries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
United Spirits Ltd 94,875 Cr. 1,3051,314/86666.8 97.90.69 %28.7 %21.7 % 2.00
United Breweries Ltd 55,174 Cr. 2,0862,205/1,541123 1580.48 %13.5 %10.1 % 1.00
Tilaknagar Industries Ltd 5,898 Cr. 306330/17738.0 33.90.16 %22.1 %24.8 % 10.0
Som Distilleries & Breweries Ltd 2,143 Cr. 111149/84.523.0 29.00.00 %19.4 %18.4 % 2.00
Radico Khaitan Ltd 28,284 Cr. 2,1142,333/1,141105 1780.14 %13.2 %11.3 % 2.00
Industry Average23,782.38 Cr1,008.2551.66150.850.30%19.99%18.28%5.88

All Competitor Stocks of United Breweries Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,1191,4271,5831,7092,4391,6821,6131,7662,2751,8901,8242,1332,475
Expenses1,0241,2621,4091,4482,1731,4631,5361,7122,0521,7061,6781,9912,190
Operating Profit961651742612662197754223184146143285
OPM %9%12%11%15%11%13%5%3%10%10%8%7%12%
Other Income646131014-2012101225267
Interest4542112121222
Depreciation55565353585250515151525858
Profit before tax43109124219218181513180144117110233
Tax %27%27%26%25%26%26%135%27%24%26%27%26%26%
Net Profit318091164162134-2101361078682174
EPS in Rs1.173.043.436.186.135.07-0.070.375.154.063.233.076.56

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales3,8994,2304,6884,8334,7295,6196,4756,5094,2435,8387,5008,1238,323
Expenses3,4213,6324,0664,1364,0874,7165,3375,6333,8625,1426,8847,4267,565
Operating Profit4785976226976429031,138876381697616696758
OPM %12%14%13%14%14%16%18%13%9%12%8%9%9%
Other Income3815378252133294330167471
Interest80807381594831312315577
Depreciation170198208244287260260285232217211212218
Profit before tax266335379455348608879569169494417551604
Tax %35%32%31%34%34%35%36%25%33%26%27%25%
Net Profit173226260299230395563428114366305411448
EPS in Rs6.518.559.8311.288.6814.9121.2916.184.2813.8211.5015.5116.92
Dividend Payout %11%11%10%10%13%13%12%15%12%76%65%64%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)30.64%15.04%15.00%-23.08%71.74%42.53%-23.98%-73.36%221.05%-16.67%34.75%
Change in YoY Net Profit Growth (%)0.00%-15.59%-0.04%-38.08%94.82%-29.21%-66.51%-49.39%294.42%-237.72%51.42%

United Breweries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:7%
5 Years:5%
3 Years:24%
TTM:13%
Compounded Profit Growth
10 Years:6%
5 Years:-6%
3 Years:52%
TTM:44%
Stock Price CAGR
10 Years:12%
5 Years:11%
3 Years:7%
1 Year:30%
Return on Equity
10 Years:11%
5 Years:9%
3 Years:9%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital262626262626262626262626
Reserves1,4111,6061,8242,1212,3082,6643,1573,4943,5563,9093,9384,152
Borrowings1,3751,3068368065943122112522621016102
Other Liabilities9289591,1981,4131,5501,7211,9891,7782,0082,0042,3002,773
Total Liabilities3,7403,8983,8854,3664,4794,7235,3845,5515,8525,9496,2807,053
Fixed Assets1,6191,6321,8361,8221,7501,7301,7771,9261,9491,9131,8511,776
CWIP1148290611377219019912911077173
Investments000000006888
Other Assets2,0072,1831,9592,4832,5912,9213,4173,4253,7683,9184,3445,097
Total Assets3,7403,8983,8854,3664,4794,7235,3845,5515,8525,9496,2807,053

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 152290841539544563643508620900-12070
Cash from Investing Activity -428-158-329-245-234-197-430-402-152-160-121-148
Cash from Financing Activity 211-172-572-297-301-364-196-95-88-287-292-122
Net Cash Flow-64-40-60-3931710380453-533-201

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow477.00596.00-214.00-109.0048.00591.00-210.00624.00119.00687.00600.00594.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days768375841009785761207868104
Inventory Days304301283330333271326312561302321298
Days Payable148116173200204175186156311206161207
Cash Conversion Cycle232268184214229193225232370174228196
Working Capital Days736738375057495974315065
ROCE %13%14%16%18%14%22%28%17%5%13%11%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters72.71%72.71%72.71%72.71%72.72%72.72%72.72%72.72%71.00%70.84%70.84%70.84%
FIIs9.78%9.61%8.70%7.69%6.93%6.94%6.43%6.31%6.70%6.71%6.63%6.43%
DIIs10.49%10.90%11.92%13.01%13.87%13.91%14.41%14.65%15.97%16.06%16.12%16.38%
Government1.16%1.16%1.16%1.16%1.16%1.16%1.16%1.16%1.16%1.16%1.16%1.16%
Public5.86%5.62%5.51%5.43%5.32%5.28%5.27%5.16%5.19%5.22%5.25%5.19%
No. of Shareholders63,30166,55666,55964,67563,57661,76063,47569,38467,95465,41866,91467,868

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Equity Hybrid Fund2,983,6520.83539.471,291,8952024-10-09130.95%
SBI Multicap Fund2,700,0003.33488.191,291,8952024-10-09109%
ICICI Prudential Bluechip Fund2,620,6410.95473.841,291,8952024-10-09102.85%
Kotak Flexicap Fund - Regular Plan2,395,5150.97433.131,291,8952024-10-0985.43%
Nippon India Growth Fund1,700,0001.26307.381,291,8952024-10-0931.59%
SBI Magnum Global Fund1,700,0004.72307.381,291,8952024-10-0931.59%
ICICI Prudential Balanced Advantage Fund1,307,1680.44236.351,291,8952024-10-091.18%
SBI Flexi Cap Fund1,291,8951.16233.591,291,8952024-10-090%
Franklin India Flexi Cap Fund1,200,0001.53216.971,291,8952024-10-09-7.11%
ICICI Prudential Multi Asset Fund1,170,2530.64211.591,291,8952024-10-09-9.42%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)15.5111.5013.824.2816.18
Diluted EPS (Rs.)15.5111.5013.824.2816.18
Cash EPS (Rs.)23.5519.4922.0613.0826.98
Book Value[Excl.RevalReserv]/Share (Rs.)158.23150.13148.99135.63133.27
Book Value[Incl.RevalReserv]/Share (Rs.)158.23150.13148.99135.63133.27
Revenue From Operations / Share (Rs.)307.21283.66220.82160.48246.19
PBDIT / Share (Rs.)29.1225.1827.4716.3133.48
PBIT / Share (Rs.)21.1117.2119.267.5422.69
PBT / Share (Rs.)20.8415.7818.706.4121.52
Net Profit / Share (Rs.)15.5411.5213.854.3116.20
NP After MI And SOA / Share (Rs.)15.5111.5013.824.2816.18
PBDIT Margin (%)9.478.8712.4410.1613.59
PBIT Margin (%)6.876.068.724.699.21
PBT Margin (%)6.785.568.463.998.74
Net Profit Margin (%)5.054.066.272.686.57
NP After MI And SOA Margin (%)5.044.056.252.666.57
Return on Networth / Equity (%)9.817.669.283.1612.15
Return on Capital Employeed (%)13.2111.3612.815.3616.85
Return On Assets (%)5.814.846.141.937.70
Long Term Debt / Equity (X)0.000.000.000.030.00
Total Debt / Equity (X)0.010.000.000.030.04
Asset Turnover Ratio (%)1.221.230.980.741.19
Current Ratio (X)1.561.621.711.551.49
Quick Ratio (X)1.080.991.241.020.93
Inventory Turnover Ratio (X)3.273.572.621.772.80
Dividend Payout Ratio (NP) (%)48.3691.333.6158.3815.45
Dividend Payout Ratio (CP) (%)31.8853.952.2619.149.27
Earning Retention Ratio (%)51.648.6796.3941.6284.55
Cash Earning Retention Ratio (%)68.1246.0597.7480.8690.73
Interest Coverage Ratio (X)111.75143.4649.1519.0328.44
Interest Coverage Ratio (Post Tax) (X)60.6373.8025.776.3414.76
Enterprise Value (Cr.)45671.7637283.6838458.3332477.7824357.79
EV / Net Operating Revenue (X)5.624.976.597.653.74
EV / EBITDA (X)59.3256.0152.9475.3027.52
MarketCap / Net Operating Revenue (X)5.645.026.747.743.73
Retention Ratios (%)51.638.6696.3841.6184.54
Price / BV (X)10.969.5010.009.166.89
Price / Net Operating Revenue (X)5.645.026.747.743.73
EarningsYield0.010.010.010.000.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of United Breweries Ltd as of October 11, 2024 is: ₹1,972.26

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 11, 2024, United Breweries Ltd is Overvalued by 5.45% compared to the current share price ₹2,086.00

Intrinsic Value of United Breweries Ltd as of October 11, 2024 is: ₹2,596.30

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 11, 2024, United Breweries Ltd is Undervalued by 24.46% compared to the current share price ₹2,086.00

Last 5 Year EPS CAGR: 31.64%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.33%, which is a positive sign.
  2. The company has higher reserves (2,845.00 cr) compared to borrowings (506.83 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (5.23 cr) and profit (467.23 cr) over the years.
  1. The stock has a high average Working Capital Days of 54.17, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 228.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in United Breweries Ltd:
    1. Net Profit Margin: 5.05%
      • 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: 13.21% (Industry Average ROCE: 19.99%)
      • 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. ROE%: 9.81% (Industry Average ROE: 18.28%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 60.63
      • 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.
    5. Quick Ratio: 1.08
      • 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.
    6. Stock P/E: 123 (Industry average Stock P/E: 51.66)
      • 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.
    7. Total Debt / Equity: 0.01
      • 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

No data availabale for About the Company
INDUSTRYADDRESSCONTACT
Industry not foundAddress not foundContact not found
Management Data not Available

FAQ

What is the latest fair value of United Breweries Ltd?

The latest fair value of United Breweries Ltd is ₹1972.26.

What is the Market Cap of United Breweries Ltd?

The Market Cap of United Breweries Ltd is 55,174 Cr..

What is the current Stock Price of United Breweries Ltd as on 11 October 2024?

The current stock price of United Breweries Ltd as on 11 October 2024 is ₹2,086.

What is the High / Low of United Breweries Ltd stocks in FY 2024?

In FY 2024, the High / Low of United Breweries Ltd stocks is 2,205/1,541.

What is the Stock P/E of United Breweries Ltd?

The Stock P/E of United Breweries Ltd is 123.

What is the Book Value of United Breweries Ltd?

The Book Value of United Breweries Ltd is 158.

What is the Dividend Yield of United Breweries Ltd?

The Dividend Yield of United Breweries Ltd is 0.48 %.

What is the ROCE of United Breweries Ltd?

The ROCE of United Breweries Ltd is 13.5 %.

What is the ROE of United Breweries Ltd?

The ROE of United Breweries Ltd is 10.1 %.

What is the Face Value of United Breweries Ltd?

The Face Value of United Breweries Ltd is 1.00.

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