United Breweries Q1 FY26 Results Analysis
Nirmal Bang has recommended investors to wait for a better entry point in United Breweries shares as near-term multiples leave limited room for upside. The company declared a mostly in-line set of numbers in its Q1 FY26 results.
Market Performance
The volume growth trend for United Breweries continues to be healthy, with market share gains noted in both overall basis and the premium segment.
While the Q1 results were broadly in line, weak profitability during a crucial quarter is expected to impact full-year profitability in FY26. Ebitda forecasts for FY26 have been revised downwards, although there is optimism for a healthy improvement in FY27.
Investment Opportunities
United Breweries presents an attractive investment case with opportunities for growth. The company is focusing on adding brewing capacity for premium brands, increasing overall capacities, and enhancing marketing efforts for long-term benefits.
The company’s investments in supply chain, digital transformation, and leadership development are also noteworthy. Recent improvements in operating environments in various states further support the structural perspective.
Outlook and Recommendation
While near-term margins may be impacted by the company’s investments, the medium-to-longer term earnings growth outlook is positive. Valuations for FY27 indicate fair pricing with limited upside potential. Nirmal Bang maintains a Hold rating on the stock, advocating for a better entry point.
For more detailed insights, refer to the full report attached.
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