⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
UBL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | UBL | Market Cap | 42,701 Cr. | Current Price | 1,615 ₹ | High / Low | 2,295 ₹ |
| Stock P/E | 102 | Book Value | 164 ₹ | Dividend Yield | 0.62 % | ROCE | 13.9 % |
| ROE | 10.8 % | Face Value | 1.00 ₹ | DMA 50 | 1,610 ₹ | DMA 200 | 1,732 ₹ |
| Chg in FII Hold | -0.76 % | Chg in DII Hold | 0.77 % | PAT Qtr | 92.0 Cr. | PAT Prev Qtr | 47.0 Cr. |
| RSI | 49.8 | MACD | 16.9 | Volume | 60,872 | Avg Vol 1Wk | 85,757 |
| Low price | 1,401 ₹ | High price | 2,295 ₹ | PEG Ratio | 12.8 | Debt to equity | 0.18 |
| 52w Index | 23.9 % | Qtr Profit Var | 76.8 % | EPS | 15.5 ₹ | Industry PE | 32.0 |
📊 Financials
- Revenue Growth: Moderate, PAT improved to 92 Cr from 47 Cr
- Profit Margins: EPS at 15.5 ₹, showing profitability but limited
- Debt Ratios: Debt-to-equity at 0.18, low leverage
- Cash Flows: Supported by operations, though margins remain tight
- Return Metrics: ROCE 13.9% and ROE 10.8% indicate modest efficiency
💹 Valuation
- P/E Ratio: 102, extremely high compared to industry average (32.0), suggesting severe overvaluation
- P/B Ratio: ~9.8 (Current Price / Book Value), expensive
- PEG Ratio: 12.8, reflecting stretched valuation relative to growth
- Intrinsic Value: Overvalued compared to peers
🏢 Business Model & Health
- Business Model: Brewing and beverages, strong brand presence in premium beer segment
- Competitive Advantage: Market leader with iconic brand portfolio and distribution strength
- Overall Health: Financially stable but valuations are stretched and efficiency modest
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 1,550–1,600 ₹ levels (close to DMA 50)
- Long-Term Holding: Suitable for brand-focused investors; dividend yield (0.62%) adds minor stability
✅ Positive
- Quarterly PAT improved (92 Cr vs 47 Cr)
- Strong brand presence ensures market leadership
- DII holdings increased (+0.77%), showing domestic institutional support
⚠️ Limitation
- P/E ratio extremely high compared to industry peers
- ROCE (13.9%) and ROE (10.8%) remain modest
- Dividend yield is low (0.62%)
📉 Company Negative News
- FII holdings decreased (-0.76%), showing reduced foreign investor confidence
- Valuation stretched with PEG ratio at 12.8
📈 Company Positive News
- DII holdings increased (+0.77%), showing domestic support
- Quarterly PAT growth of 76.8% indicates operational improvement
- Technical indicators (RSI 49.8, MACD 16.9) suggest neutral-to-positive momentum
🏭 Industry
- Beverages industry P/E: 32.0, much lower than UBL’s valuation
- Sector demand driven by consumer spending and premiumization trends
🔎 Conclusion
- UBL is financially stable with strong brand leadership but modest efficiency metrics
- Valuation is extremely expensive compared to industry peers, limiting upside potential
- Entry near 1,550–1,600 ₹ may offer value; suitable for long-term investors focused on consumer brand strength