Stock Price Movement and Market Context
The stock recorded a day change of -0.16%, yet it outperformed its sector by 2.11% on the day. Despite this relative outperformance, United Breweries remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downtrend. The new low price of Rs.1435.75 contrasts sharply with its 52-week high of Rs.2299.40, reflecting a substantial depreciation of nearly 37.5% from its peak.
The broader market environment has also been challenging. The Sensex opened 385.82 points lower and closed down by 266.74 points at 81,527.91, a decline of 0.79%. The index has been on a three-week consecutive fall, losing 4.94% over this period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating some underlying market resilience despite recent weakness.
Financial Performance and Profitability Concerns
United Breweries’ recent quarterly results reveal pressures on profitability and sales. Profit Before Tax (PBT) for the quarter stood at Rs.50.94 crore, a sharp decline of 66.4% compared to the previous four-quarter average. Similarly, Profit After Tax (PAT) dropped by 60.3% to Rs.46.52 crore. Net sales also contracted by 11.7% to Rs.2,052.83 crore in the same period. These figures highlight a notable slowdown in revenue generation and earnings, contributing to the stock’s downward trajectory.
Over the past year, the company’s profits have fallen by 19%, while the stock price has declined by 29.52%, underperforming the Sensex, which gained 7.50% during the same timeframe. This underperformance extends to longer periods as well, with United Breweries lagging behind the BSE500 index over the last three years, one year, and three months.
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Valuation and Financial Ratios
Despite recent setbacks, United Breweries maintains a low average debt-to-equity ratio of 0.02 times, indicating a conservative capital structure with limited leverage. The company’s operating profit has grown at an annual rate of 67.20% over the long term, suggesting underlying operational strength despite recent quarterly declines.
The Return on Capital Employed (ROCE) stands at 10.9%, reflecting a fair level of capital efficiency. The enterprise value to capital employed ratio is 8.1, which positions the stock at a discount relative to its peers’ historical valuations. This valuation gap may be a factor in the stock’s current pricing but also reflects the market’s cautious stance given recent earnings trends.
Institutional Holdings and Market Sentiment
Institutional investors hold a significant 24.1% stake in United Breweries, indicating a level of confidence from entities with substantial analytical resources. This ownership concentration suggests that despite the stock’s recent lows, there remains a base of investors with a longer-term perspective on the company’s fundamentals.
However, the company’s Mojo Score currently stands at 33.0 with a Mojo Grade of Sell, upgraded from a previous Strong Sell rating on 17 Nov 2025. The Market Cap Grade is 2, reflecting a mid-cap status with moderate market capitalisation relative to peers.
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Summary of Performance Trends
United Breweries’ stock has experienced a sustained decline over the past year, with a 29.52% loss contrasting with the broader market’s positive returns. The recent 52-week low of Rs.1435.75 underscores the challenges faced by the company in maintaining sales and profitability momentum. While the stock has shown some recovery after two consecutive days of decline, it remains below all major moving averages, signalling continued caution among market participants.
The company’s financial metrics reveal a mixed picture: low leverage and strong long-term operating profit growth are positive factors, but recent quarterly earnings and sales declines have weighed on sentiment. Institutional investors maintain a notable stake, reflecting some confidence in the company’s fundamentals despite recent headwinds.
Overall, United Breweries Ltd. remains in a phase of subdued market performance, with its stock price reflecting both sectoral pressures and company-specific earnings trends.
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