UBL - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.4
| Stock Code | UBL | Market Cap | 38,709 Cr. | Current Price | 1,463 ₹ | High / Low | 2,245 ₹ |
| Stock P/E | 92.2 | Book Value | 164 ₹ | Dividend Yield | 0.68 % | ROCE | 13.9 % |
| ROE | 10.8 % | Face Value | 1.00 ₹ | DMA 50 | 1,533 ₹ | DMA 200 | 1,676 ₹ |
| Chg in FII Hold | -0.56 % | Chg in DII Hold | 0.63 % | PAT Qtr | 92.0 Cr. | PAT Prev Qtr | 47.0 Cr. |
| RSI | 40.1 | MACD | -24.1 | Volume | 1,54,186 | Avg Vol 1Wk | 1,52,696 |
| Low price | 1,401 ₹ | High price | 2,245 ₹ | PEG Ratio | 11.6 | Debt to equity | 0.18 |
| 52w Index | 7.35 % | Qtr Profit Var | 76.8 % | EPS | 15.5 ₹ | Industry PE | 41.0 |
Analysis: United Breweries (UBL) shows moderate fundamentals with ROE (10.8%) and ROCE (13.9%) below strong benchmarks. The stock trades at a steep premium (P/E 92.2 vs industry 41.0), making it expensive relative to peers. Technical indicators suggest weakness (RSI 40.1, MACD negative), though recent profit growth (+76.8% QoQ) provides some support. Volumes are stable but not showing breakout strength. Overall, UBL is a cautious swing trade candidate with limited upside in the short term.
Optimal Entry Price: Around 1,420–1,440 ₹ (near recent support).
Exit Strategy if Holding: Consider exiting near 1,600–1,650 ₹ resistance zone unless momentum improves significantly.
✅ Positive
- Quarterly PAT growth from 47 Cr. to 92 Cr. (+76.8%).
- Dividend yield of 0.68% provides modest income support.
- DII holdings increased (+0.63%), showing domestic institutional confidence.
- Low debt-to-equity ratio (0.18), indicating financial stability.
⚠️ Limitation
- Very high P/E ratio (92.2) compared to industry average (41.0).
- Weak ROE (10.8%) and ROCE (13.9%).
- Stock trading below both 50 DMA (1,533 ₹) and 200 DMA (1,676 ₹).
📉 Company Negative News
- FII holdings declined (-0.56%), showing reduced foreign investor interest.
- Technical weakness with RSI at 40.1 and MACD negative (-24.1).
📈 Company Positive News
- Strong quarterly profit growth (+76.8%).
- EPS at 15.5 ₹ reflects earnings improvement.
- Stable balance sheet with low leverage.
🏭 Industry
- Alcoholic beverages sector with steady demand.
- Industry PE at 41.0 highlights UBL’s premium valuation.
- Sector growth supported by rising consumption trends in India.
📝 Conclusion
UBL is a cautious swing trade candidate with strong recent profit growth but weak technicals and expensive valuation. Entry near 1,420–1,440 ₹ offers a limited-risk setup, with an exit target around 1,600–1,650 ₹. Overvaluation and weak efficiency metrics warrant caution, but short-term profit momentum provides some trading opportunity.