United Breweries posted a strong performance in Q4 FY24, driven by improving margins and volume-led revenue growth. The company reported a net profit of ₹97.4 crore, up 20.5 percent from ₹80.8 crore in Q4 FY23, supported by cost optimization and better product mix.
Revenue for the quarter came in at ₹2,321.3 crore, up 8.9 percent from ₹2,131.5 crore a year ago. Operating performance was even more robust, with EBITDA rising 31.2 percent year-on-year to ₹186.3 crore from ₹142 crore. EBITDA margin improved to 8 percent versus 6.7 percent last year, reflecting operating leverage and seasonal tailwinds.
To reward shareholders, the board declared a dividend of ₹10 per share. United Breweries’ stock closed at ₹2,182 on May 7, showing a gain of 2.11 percent. The company commands a market cap of ₹57,627 crore and trades at a P/E of 125, significantly above the industry average, reflecting premium brand positioning and investor confidence.
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Despite the high valuation, fundamentals remain steady. Return on equity stands at 10.8 percent and ROCE at 13.9 percent. However, free cash flow remained negative at ₹-23.1 crore in FY24, with a cumulative three-year FCF of ₹-418 crore, hinting at continued capital investments and margin pressures in a regulated sector.
Promoter holding remains stable at 70.84 percent. DIIs have gradually increased their stake to 16.17 percent, while FII holding stood at 6.92 percent and public shareholding declined slightly to 4.93 percent.
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Over the past three years, United Breweries has achieved a profit CAGR of 8 percent and sales CAGR of 15 percent. Stock price CAGR has been 14 percent over the same period. EPS stands at ₹16.7, while book value is ₹165. The company maintains a low debt-to-equity ratio of 0.14 and has an Altman Z score of 13.6, indicating strong financial health.
Outlook remains cautiously optimistic with seasonal consumption trends supporting near-term demand, but valuation and margin volatility could temper upside. Long-term investors continue to watch United Breweries as a premium consumer play in the beverages space.
Disclaimer
This article is for educational and informational purposes only. We are not SEBI-registered investment advisors; none of this content should be considered financial advice. Please consult a certified financial planner or advisor before making any investment decisions.
Aditya Gaur is the founder of FinanceXaditya and a seasoned stock market investor with over 7 years of experience. Known for building India’s first public dividend growth portfolio showcase, he shares time-tested strategies and real insights that help everyday investors create wealth. With 50,000+ followers across social media, Aditya has become a trusted voice in personal finance and long-term investing.
