United Breweries Shares Fall Nearly 3 Percent After Recent Gains

United Breweries shares declined almost three percent in morning trade on Thursday, 29 October, following two consecutive sessions of gains. The stock opened at ₹1,191.35 and touched an intraday low of ₹1,164 after closing at ₹1,199.75 the previous day. This drop was driven by profit booking after the stock rose nearly six percent in the last two sessions.

Financial Results

The recent gains followed the company's September quarter results for fiscal year 2027. Consolidated profit surged 191 percent year-on-year to ₹135.31 crore compared to ₹46.52 crore in the same quarter last year. Revenue from operations jumped 23.7 percent to ₹4,623 crore from ₹3,737.31 crore in the previous corresponding period.

Brokerage Views

Brokerage firm Nirmal Bang Institutional Equities upgraded the stock to a buy and increased its target price to ₹1,610. The firm cited accelerating volumes, rapid premiumisation, and gross margin recovery driven by structural pricing. Nirmal Bang expects a revenue, EBITDA, and APAT compound annual growth rate of 11.8 percent, 22.4 percent, and 29.5 percent respectively over FY26 to FY29. Meanwhile, Elara Securities maintained an accumulate view while lowering its target price to ₹1,400. Elara highlighted potential downside risks from increased competition from Carlsberg and rising input costs, while noting that privatization in Tamil Nadu and the opening of Bihar could act as upside triggers.

Context

Share prices often experience short-term dips due to profit booking when investors sell shares to lock in recent gains after a rapid price rise. Brokerage firms regularly review company financial results to update their stock ratings and target prices for market investors.