Update shared on 13 Dec 2025
Fair value Decreased 2.84%Analysts have nudged their price target on United Breweries slightly lower from ₹2,420 to about ₹2,351. This reflects modestly higher discount rates even as they factor in stronger revenue growth, improving profit margins, and a somewhat more reasonable future price to earnings multiple.
What's in the News
- Launched Heineken Silver in New Delhi, targeting the growing premium mild beer segment with a crisp, smooth profile and pricing between INR 155 and INR 305 across bottle and can formats (company announcement).
- Completed registration of the lease deed for a greenfield brewery in Unnao, Uttar Pradesh, which will produce both mainstream and premium brands including Heineken, with can and bottle lines to support long term capacity expansion (company filing).
- The new Uttar Pradesh facility is expected to be operational by the second quarter of FY2027, aligning with strong category growth in the state and reinforcing United Breweries manufacturing footprint (company filing).
- Scheduled a board meeting on October 29, 2025, to review and approve unaudited standalone and consolidated financial results for the quarter and year to date ended September 30, 2025, along with the limited review report (regulatory disclosure).
- Announced the relaunch of Kalyani Black Label Strong in West Bengal at INR 140 for a 650 ml bottle, aiming to reinvigorate the strong beer category by leveraging its deep local heritage and loyal consumer base (company announcement).
Valuation Changes
- The consensus analyst price target has edged lower from ₹2,420 to about ₹2,351, implying a modest de-rating in fair value estimates.
- The discount rate has risen slightly from 12.73 percent to 12.76 percent, reflecting a marginally higher perceived risk profile or cost of capital.
- Revenue growth has been revised up from about 15.72 percent to about 16.53 percent, indicating slightly stronger expectations for top-line expansion.
- Net profit margin has improved from about 9.71 percent to about 10.21 percent, signaling a mild upgrade to medium-term profitability assumptions.
- The future P/E has fallen meaningfully from about 65.6x to about 59.2x, indicating a more conservative valuation multiple despite better growth and margin outlook.
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