United Breweries (UBL)

FairStock Score: 35/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I’m looking at United Breweries as a Graham-style bargain hunter, and my first reaction is caution. The market cap is ₹36,398 Cr, price ₹1,376.60, and book value ₹171.06. That puts P/B at 8.05 and P/E at 91.77. Graham’s number, ₹239.61, is far below the market price, giving a margin of safety of -569.85%—in plain English, no margin of safety at all. For a business with 5-year revenue CAGR of 6.49%, sales growth of 7.10%, and profit growth of -9.50%, this is a very rich price. Latest quarter sales are ₹2,073 Cr but net profit is only ₹81 Cr; FCF is ₹-4 Cr. The balance sheet has some comfort: Debt/Equity 0.29, Altman Z-Score 5.09, Piotroski F-Score 8/9. Promoter holding is high at 70.84%, and ROCE is 13.88%, though ROE 9.37% is not exceptional. The 52-week range ₹1,140.30–₹1,844.00 shows the stock can swing. Dividend yield is only 0.72%, so I’m not paid much to wait. As Buffett might say, a wonderful business at a fair price is one thing; a slow-growth brewery at 54.39 times EV/EBITDA is another. If a moat exists, it should show up in returns and cash flow; here ROE is 9.37%, ROCE 13.88%, and FCF is negative, so the numbers do not justify this valuation. FairStock score 35/100 mixed confirms the ambiguity. I’d watch profit recovery and cash generation before paying up. For now, I see a good company, but not a good value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer