United Breweries shares gain as JPMorgan stays bullish, sees 14% potential upside

JPMorgan trims target but keeps bullish view on United Breweries

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Shares of United Breweries rose by a percent to Rs 1,822 on September 16 after global brokerage JPMorgan reiterated its positive stance on the counter but trimmed its price target. The firm maintained an “overweight” rating while lowering the target price to Rs 2,050 from Rs 2,200, still implying an upside of nearly 14 percent from current levels.

According to JPMorgan, United Breweries’ stock has corrected by around 10 percent over the past two months, while the benchmark Nifty remained largely flat. The correction, they argue, presents a good entry point for investors.

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The brewer is facing a difficult second quarter, marked by significant weather-related disruptions. Unseasonal and above-average monsoon rainfall across key states has dampened demand for its summer-centric products, particularly beer.

Despite these headwinds, raw material prices have remained stable. Along with an improved ratio of return bottles, this is expected to support the company’s gross margins in the coming quarters, JPMorgan said in its note.

Looking ahead, the brokerage expects United Breweries’ premiumisation drive and strengthened go-to-market (GTM) strategy to help it outperform the broader market. They forecast volume growth in the range of 6 percent to 7 percent over financial years 2026 and 2027, driven by a likely recovery in the second half of the current year.

That said, JPMorgan has trimmed its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) estimates by 8 percent for FY26–27 to account for the weaker volumes expected in the ongoing September quarter.

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