BSE:532478

Stock Analysis Report

Executive Summary

United Breweries Limited manufactures, purchases, and sells beer in India and internationally.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has United Breweries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.6%

532478

2.9%

IN Beverage

3.1%

IN Market


1 Year Return

9.1%

532478

11.9%

IN Beverage

3.7%

IN Market

Return vs Industry: 532478 matched the Indian Beverage industry which returned 11.9% over the past year.

Return vs Market: 532478 exceeded the Indian Market which returned 3.7% over the past year.


Shareholder returns

532478IndustryMarket
7 Day2.6%2.9%3.1%
30 Day5.1%4.4%5.7%
90 Day-3.9%2.9%1.4%
1 Year9.3%9.1%12.1%11.9%5.9%3.7%
3 Year44.0%43.3%35.8%35.4%22.3%16.0%
5 Year90.1%88.7%48.4%47.9%42.5%28.9%

Price Volatility Vs. Market

How volatile is United Breweries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is United Breweries undervalued compared to its fair value and its price relative to the market?

68.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 532478 (₹1318.65) is trading above our estimate of fair value (₹318.46)

Significantly Undervalued: 532478 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532478 is poor value based on its PE Ratio (69x) compared to the Beverage industry average (14x).

PE vs Market: 532478 is poor value based on its PE Ratio (69x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: 532478 is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: 532478 is overvalued based on its PB Ratio (11x) compared to the IN Beverage industry average (1.4x).


Next Steps

Future Growth

How is United Breweries forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532478's forecast earnings growth (19.7% per year) is above the savings rate (7.6%).

Earnings vs Market: 532478's earnings (19.7% per year) are forecast to grow faster than the Indian market (18.2% per year).

High Growth Earnings: 532478's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532478's revenue (11.2% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: 532478's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 532478's Return on Equity is forecast to be low in 3 years time (19.6%).


Next Steps

Past Performance

How has United Breweries performed over the past 5 years?

18.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 532478's earnings have grown by 18.8% per year over the past 5 years.

Accelerating Growth: 532478's earnings growth over the past year (15.8%) is below its 5-year average (18.8% per year).

Earnings vs Industry: 532478 earnings growth over the past year (15.8%) underperformed the Beverage industry 15.8%.


Return on Equity

High ROE: 532478's Return on Equity (15.9%) is considered low.


Return on Assets

ROA vs Industry: 532478 has a higher Return on Assets than the Beverage industry average last year.


Return on Capital Employed

ROCE Improving: 532478 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is United Breweries's financial position?


Financial Position Analysis

Short Term Liabilities: 532478's short term assets (₹30.0B) exceeds its short term liabilities (₹21.0B)

Long Term Liabilities: 532478's short term assets (30.0B) exceeds its long term liabilities (980.5M)


Debt to Equity History and Analysis

Debt Level: 532478's debt to equity ratio (6.6%) is considered satisfactory

Reducing Debt: 532478's debt to equity ratio has reduced from 64.9% to 6.6% over the past 5 years.

Debt Coverage: 532478's debt is well covered by operating cash flow (303.9%).

Interest Coverage: 532478's interest payments on its debt are well covered by EBIT (37.1x coverage).


Balance Sheet

Inventory Level: 532478 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532478's debt is covered by short term assets (assets are 14.191540x debt).


Next Steps

Dividend

What is United Breweries's current dividend yield, its reliability and sustainability?

0.19%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0.6%markettop25%2.5%industryaverage0.3%forecastin3Years0.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 532478's dividend (0.19%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 532478's dividend (0.19%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).

Stable Dividend: 532478 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: 532478 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 532478 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532478's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of United Breweries's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Shekhar Ramamurthy (58yo)

4.2yrs

Tenure

₹132,648,685

Compensation

Mr. Shekhar Ramamurthy has been the Managing Director of United Breweries Limited since August 01, 2015 and serves as its President. Mr. Ramamurthy served as Deputy President of Sales, Marketing & Operatio ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Shekhar's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Shekhar's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.3yrs

Average Tenure

54yo

Average Age

Experienced Management: 532478's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

9.6yrs

Average Tenure

61yo

Average Age

Experienced Board: 532478's board of directors are considered experienced (9.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Govind Iyengar (52yo)

    Senior VP of Legal

    • Tenure: 0yrs
  • Shekhar Ramamurthy (58yo)

    President

    • Tenure: 4.2yrs
    • Compensation: ₹132.65m
  • Perry Goes (54yo)

    Chief Strategy & Business Analytic Officer

    • Tenure: 0yrs
    • Compensation: ₹10.61m
  • Kiran Kumar (51yo)

    Chief Sales Officer

    • Tenure: 0yrs
    • Compensation: ₹11.57m
  • Cedric Vaz (60yo)

    Chief Supply Chain Officer

    • Tenure: 13.4yrs
    • Compensation: ₹13.56m
  • A. Ramu (58yo)

    General Manager of Brewing & Technical

    • Tenure: 0yrs
  • Manmohan Kalsy (52yo)

    Chief Human Resource Officer

    • Tenure: 0yrs
  • Debabrata Mukherjee

    Chief Marketing Officer

    • Tenure: 0.5yrs
  • Tushara Shankar

    Head of CSR

    • Tenure: 0yrs
  • Berend Odink

    Chief Financial Officer

    • Tenure: 0.2yrs

Board Members

  • A. K. Nedungadi (61yo)

    Non-Executive Director

    • Tenure: 17.2yrs
    • Compensation: ₹1.90m
  • Sunil Alagh (73yo)

    Non-Executive Independent Director

    • Tenure: 14.5yrs
    • Compensation: ₹1.95m
  • Kiran Mazumdar-Shaw (66yo)

    Non Executive Independent Director

    • Tenure: 10yrs
    • Compensation: ₹750.00k
  • Shekhar Ramamurthy (58yo)

    President

    • Tenure: 4.2yrs
    • Compensation: ₹132.65m
  • Stephan Gerlich (61yo)

    Non Executive Independent Director

    • Tenure: 9.3yrs
    • Compensation: ₹600.00k
  • Madhav Bhatkuly (53yo)

    Non Executive Independent Director

    • Tenure: 10yrs
    • Compensation: ₹2.25m
  • Dolf van den Brink (46yo)

    Non–Executive Director

    • Tenure: 0.9yrs
    • Compensation: ₹300.00k
  • Christiaan August Van Steenbergen

    Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: ₹2.05m

Company Information

United Breweries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Breweries Limited
  • Ticker: 532478
  • Exchange: BSE
  • Founded: 1915
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹342.762b
  • Shares outstanding: 264.41m
  • Website: https://www.unitedbreweries.com

Location

  • United Breweries Limited
  • UB Towers
  • UB City
  • Bengaluru
  • Karnataka
  • 560001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532478BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2002
UBLNSEI (National Stock Exchange of India)YesEquity SharesININROct 2002

Biography

United Breweries Limited manufactures, purchases, and sells beer in India and internationally. It offers beer under the Kingfisher premium, Kingfisher strong, Kingfisher ultra, Kingfisher ultra max, Kingfi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:43
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.