UBL - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.6

📊 Analysis Summary

United Breweries Ltd (UBL) is not currently a strong candidate for swing trading due to weak technical momentum, stretched valuation, and limited upside potential. While the company has shown modest profit growth and maintains a healthy balance sheet, the stock lacks the short-term triggers needed for a successful swing trade setup.

✅ Positives

Low Debt (D/E: 0.14)

Financially stable — reduces downside risk.

ROCE: 13.9% & ROE: 10.8%

Decent efficiency metrics — supports long-term fundamentals.

Volume Slightly Above Average

Mild increase in activity — early signs of interest.

Quarterly PAT Growth: +5.95%

Positive earnings trend — though not strong.

EPS: ₹17.1

Solid earnings base — but not enough to justify current valuation.

⚠️ Weaknesses

P/E: 112 vs Industry PE: 32.9

Extremely overvalued — limits short-term upside.

PEG Ratio: 14.1

Indicates poor earnings growth relative to valuation.

RSI: 44.8

Neutral zone — lacks momentum.

MACD: 3.87

Weak bullish signal — not convincing.

Price Below DMA 50 & 200 (₹2,006 & ₹2,003)

Trading below key averages — bearish bias.

FII Holding ↓ 0.19%

Foreign investors reducing exposure — negative sentiment.

52W Index: 33.8%

Far from yearly high — weak relative strength.

🎯 Optimal Entry Price

Entry Zone: ₹1,920–₹1,940

Near recent support — only consider entry if RSI rises above 50 and MACD strengthens.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹2,050–₹2,080

Near DMA resistance — good level to book profits.

Stop Loss: ₹1,880

Below recent support — protects against further downside.

Would you like to explore consumer or FMCG stocks with stronger breakout setups and better valuation metrics for swing trading?

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