United Breweries shares at a good entry point, can rise 14%, JPMorgan says

Shares of United Breweries Ltd. are in focus on Tuesday, September 16, as brokerage firm JPMorgan maintained its positive stance on the stock but cut its price target.

JPMorgan maintained its "overweight" recommendation on United Breweries, but cut its price target to ₹2,050 from ₹2,200 earlier. The revised price target still implies a potential upside of 14% from current levels.

The brokerage said that the United Breweries stock has corrected by 10% over the last two months, while the Nifty has been flat. This offers a good entry opportunity.

United Breweries is navigating a challenging second quarter, which has witnessed significant weather-related disruptions, so far, JPMorgan said. Many key states witnessed above average monsoon rainfall, weighing down the summer-centric product sales, including beer.

Raw material prices have remained stable, and this, along with the improved ratio of return bottles, will support United Breweries' gross margins going forward, according to the JPMorgan note.

JPMorgan expects premiumisation and go-to-market (GTM) efforts to enable United Breweries to outperform the broader market.

However, the brokerage has cut United Breweries' Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) estimates by 8% for financial year 2026-2027, to factor in the volume witness for this ongoing September quarter.

JPMorgan expects United Breweries' volume growth to be between 6% and 7% over financial year 2026-2027 estimates, as there would be a recovery in the second half of the year.

19 analysts that have coverage on United Breweries, of which, four have a "buy" rating, six have a "hold" rating and nine have a "sell" rating.

Shares of United Breweries ended the previous session 0.2% up at ₹1,800 per share. The stock has declined nearly 14% this year, so far.

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