JPMorgan has reiterated its overweight rating on United Breweries (UBBL) with a target price of ₹2,050, calling the recent 10% correction in the stock over the past two months a good entry opportunity. The brokerage noted that while the company is navigating a difficult second quarter due to weather-related disruptions, its long-term fundamentals remain intact.
Above-average monsoon rainfall in many states has weighed on beer sales during the peak summer season, leading JPMorgan to cut its FY26–27 EBITDA estimates by 8%. However, it highlighted that raw material prices have remained stable and the increasing use of returnable bottles is supporting gross margins.
The brokerage expects UBBL’s premiumisation efforts and go-to-market initiatives to enable it to outperform the broader market once demand conditions normalise. It forecast 6–7% volume growth over FY26–27, with recovery likely in the second half of FY26. JPMorgan said the company’s leadership in the beer market and margin support measures underpin its positive stance despite near-term challenges.
Disclaimer: The views and recommendations made in this article are those of JPMorgan. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
