United Breweries Up 2% On Upbeat Outlook from JP Morgan, Forecasts of 14% Upside

Shares of United Breweries rose 2% on September 16 after JPMorgan reiterated its positive stance on the brewer, even as it marginally scaled back its price target.

The brokerage has maintained an “overweight” rating on United Breweries but still cut its target price to ₹2,050 from ₹2,200 earlier. Despite the cut, the revised target still suggests an upside of roughly 14% from current levels.

JPMorgan noted that the stock has slipped around 10% over the past two months, while the Nifty benchmark has held broadly flat, a divergence that, in the firm’s view, creates a compelling entry point for investors

United Breweries is faced with a tricky second quarter, marked by heavier-than-usual monsoon rains in several states, which have dampened sales of its summer-led products, particularly beer.

On the brighter side, input costs have remained steady, and a better return-bottle ratio is expected to support gross margins. Meanwhile, the company’s focus on premiumisation and sharper go-to-market strategies should help it outpace the wider market, JPMorgan said.

Still, the brokerage has trimmed its earnings forecasts, cutting Ebitda estimates for FY26–27 by about 8% to reflect weaker volumes in the current September quarter. That said, it expects a recovery to take place in the second half of the fiscal, with volume growth in the 6–7% range over FY26–27.