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United Breweries shares: Up yesterday, down today - Why is the stock volatile? What lies ahead for it? Expert view

By · Published by Everything Blog

In short

Shares fell nearly 3% to an intraday low of ₹1,164 following a combined 6% gain over the previous two sessions. Consolidated net profit reached ₹135.31 crore alongside revenue growth of 23.7% to ₹4,623 crore for the September quarter. Market brokerages noted that while volume performance was strong, elevated brand investments and market rivalry from Carlsberg pose margin challenges.

Key points

  • Nirmal Bang upgraded the stock to a buy rating with an increased target price of ₹1,610.: Nirmal Bang upgraded the stock to a buy rating with an increased target price of ₹1,610.
  • Elara Securities trimmed its target price to ₹1,400 due to sustained advertising costs an…: Elara Securities trimmed its target price to ₹1,400 due to sustained advertising costs and market competition from Carlsberg.
  • Potential state-level policy shifts in Bihar and Tamil Nadu could serve as significant up…: Potential state-level policy shifts in Bihar and Tamil Nadu could serve as significant upside triggers for future growth.

Sources checked by our analysis pipeline: 1

A day after clocking a healthy gain of 5% and extending gains for the second consecutive session, United Breweries shares declined almost 3% in morning trade on the BSE on Thursday, 29 October. United Breweries share price opened at ₹1,191.35 against its previous close of ₹1,199.75 and declined 3% to an intraday low of ₹1,164.

The stock is witnessing volatility due to profit booking after rising nearly 6% in the last two sessions.

The stock witnessed healthy gains in the previous session after the company reported its September quarter (Q2FY27) results.

In an exchange filing on 27 September, the company said its Q2FY27 consolidated profit rose 191% year-on-year (YoY) to ₹135.31 crore. In the same quarter last year, the company's profit was ₹46.52 crore.

Revenue from operations for the quarter jumped 23.7% YoY to ₹4,623 crore from ₹3,737.31 crore in Q2FY26.

According to brokerage firms, the stock may deliver healthy returns in the long term due to rising volumes, premiumisation, and a gross margin recovery.

Brokerage firm Nirmal Bang Institutional Equities has upgraded the stock to a "buy" from a…

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