United Breweries Ltd. (UBL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Globus Spirits

Radico Khaitan

Allied Blenders

Tilaknagar Inds.

G M Breweries

Varun Beverages

United Spirits

United Breweries

Som Distilleries

Assoc.Alcohols

Sula Vineyards

Why is United Breweries Ltd. ?

PBT LESS OI(Q) At Rs 50.94 cr has Fallen at -66.4% (vs previous 4Q average)
PAT(Q) At Rs 46.52 cr has Fallen at -60.3% (vs previous 4Q average)
NET SALES(Q) At Rs 2,052.83 cr has Fallen at -11.7% (vs previous 4Q average)

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -14.45% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is United Breweries for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

United Breweries

-14.45%

-0.66

21.92%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.60%

EBIT Growth (5y)

67.20%

EBIT to Interest (avg)

52.31

Debt to EBITDA (avg)

0.32

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

1.70

Tax Ratio

27.69%

Dividend Payout Ratio

59.86%

Pledged Shares

12.40%

Institutional Holding

24.10%

ROCE (avg)

12.78%

ROE (avg)

9.86%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

117

Industry P/E

Price to Book Value

10.31

EV to EBIT

86.43

EV to EBITDA

58.87

EV to Capital Employed

9.38

EV to Sales

4.90

PEG Ratio

Dividend Yield

0.59%

ROCE (Latest)

10.85%

ROE (Latest)

8.81%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CF(Y)

Highest at Rs 235.05 Cr

-17What is not working for the Company

PBT LESS OI(Q)

At Rs 50.94 cr has Fallen at -66.4% (vs previous 4Q average

PAT(Q)

At Rs 46.52 cr has Fallen at -60.3% (vs previous 4Q average

NET SALES(Q)

At Rs 2,052.83 cr has Fallen at -11.7% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 129.68 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 6.32%

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Here's what is working for United Breweries

Operating Cash Flow - Annually

Highest at Rs 235.05 Cr and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Here's what is not working for United Breweries

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 50.94 cr has Fallen at -66.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 151.42 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 46.52 cr has Fallen at -60.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 117.05 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 2,052.83 cr has Fallen at -11.7% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 2,326.07 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 129.68 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 6.32%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 50.94 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

Highest at Rs 14.86 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income