United Breweries Ltd. Stock Falls to 52-Week Low of Rs.1496

Recent Price Movement and Market Context

On 12 Jan 2026, United Breweries Ltd. recorded an intraday low of Rs.1496, representing a 3.22% drop during the trading session. The stock has experienced a consecutive four-day decline, cumulatively falling by 5.06% over this period. This underperformance is notable against the sector, with the stock lagging by 0.87% relative to its peers today.

Trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — the stock’s technical indicators signal sustained downward momentum. This contrasts with the broader market, where the Sensex, despite a negative opening and a fall of 496.37 points (-0.76%) to 82,938.94, remains within 3.88% of its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day average, indicating a more stable medium-term trend compared to United Breweries Ltd.

Financial Performance and Profitability Concerns

United Breweries Ltd.’s recent quarterly results have contributed to the stock’s subdued performance. The company reported a Profit After Tax (PAT) of Rs.46.52 crores, reflecting a sharp decline of 60.3% compared to the average of the previous four quarters. Net sales for the quarter stood at Rs.2,052.83 crores, down 11.7% from the prior four-quarter average, signalling a contraction in revenue generation.

Operating profitability has also been impacted, with the Profit Before Depreciation, Interest, and Taxes (PBDIT) falling to a low of Rs.129.68 crores. These figures underscore a period of financial strain, contributing to the stock’s negative returns and diminished investor confidence.

Long-Term Performance and Relative Comparison

Over the past year, United Breweries Ltd. has delivered a total return of -25.78%, significantly underperforming the Sensex, which posted a positive return of 7.18% during the same period. The stock’s 52-week high was Rs.2299.4, highlighting the extent of the recent decline. Additionally, the company has underperformed the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in maintaining competitive growth and market positioning.

Valuation and Financial Ratios

Despite recent setbacks, United Breweries Ltd. maintains a low average debt-to-equity ratio of 0.02 times, reflecting a conservative capital structure. The company’s operating profit has grown at an annualised rate of 67.20% over the long term, suggesting underlying business strength despite short-term fluctuations.

Return on Capital Employed (ROCE) stands at 10.9%, indicating a fair level of efficiency in generating returns from capital invested. The enterprise value to capital employed ratio is 8.6, which positions the stock at a discount relative to its peers’ historical valuations. However, profit contraction of 19% over the past year has weighed on overall valuation metrics.

Institutional Holdings and Market Sentiment

Institutional investors hold a significant 24.1% stake in United Breweries Ltd., reflecting a level of confidence from entities with extensive analytical resources. This ownership concentration may influence the stock’s trading dynamics and reflects a degree of fundamental interest despite recent price declines.

Mojo Score and Market Ratings

United Breweries Ltd. currently holds a Mojo Score of 33.0, with a Mojo Grade of Sell as of 17 Nov 2025. This represents an upgrade from a previous Strong Sell rating, indicating some improvement in the company’s outlook, albeit still reflecting caution. The market capitalisation grade is rated at 2, underscoring the mid-cap status of the stock within the beverages sector.

The downgrade in recent quarters is consistent with the company’s financial performance and price action, as reflected in the stock’s sustained decline to its new 52-week low.

Summary of Key Price and Performance Metrics

To summarise, United Breweries Ltd. has experienced a notable decline in share price, touching Rs.1496 today, its lowest level in the past year. The stock’s four-day losing streak and underperformance relative to the sector and broader market indices highlight ongoing challenges. Financial results reveal significant drops in profitability and sales, while valuation metrics suggest the stock is trading at a discount compared to peers.

Despite these factors, the company’s low leverage, reasonable ROCE, and institutional backing provide a nuanced picture of its current standing within the beverages industry.

Unlock special upgrade rates for a limited period. Start Saving Now →