United Breweries Upgraded to Buy: Nirmal Bang Assigns ₹2,250 Target Price

United Breweries (UBL) has been upgraded to a "buy" rating by Nirmal Bang Institutional Equities due to medium-to-longer term benefits from recent investments, favourable state policies, and demand turnaround. The brokerage assigned a target price of ₹2,250 per share, a 25% upside from the closing price. UBL's turnaround from underperformance and declining share, along with a more benign excise regime and stable material costs, support the upgrade.

United Breweries (UBL) has been upgraded to a "buy" rating by Nirmal Bang Institutional Equities, signaling a positive outlook for the company's medium-to-long-term prospects. The brokerage firm, in its latest research report, cited several factors contributing to this upgrade, including recent investments, favorable state policies, and a turnaround in demand September quarter set for GST hiccups, analysts back HUL, Britannia, Marico^[1].

The upgrade comes with a target price of ₹2,250 per share, representing a 25% upside from the current closing price. Nirmal Bang noted that UBL's turnaround from underperformance and declining share prices, coupled with a more benign excise regime and stable material costs, supports the optimistic rating September quarter set for GST hiccups, analysts back HUL, Britannia, Marico^[1].

Analysts at Nirmal Bang highlighted that UBL's recent investments, particularly in expanding its distribution network and enhancing its product portfolio, are expected to yield medium-to-long-term benefits. Additionally, favorable state policies, such as those in Maharashtra and Karnataka, are anticipated to provide a supportive environment for the company's operations September quarter set for GST hiccups, analysts back HUL, Britannia, Marico^[1].

Moreover, the company's recent demand turnaround, driven by a shift in consumer preferences towards premium and craft beers, is expected to further bolster UBL's financial performance. The brokerage firm believes that these factors collectively position UBL as a strong performer within the alcoholic beverages sector September quarter set for GST hiccups, analysts back HUL, Britannia, Marico^[1].

In the context of the broader consumer sector, analysts have noted that the second quarter of the financial year 2026 (Q2FY26) has been challenging due to GST transition issues, erratic monsoons, and rising input costs. However, companies like UBL, with a strong portfolio and resilient demand, are expected to navigate these challenges effectively September quarter set for GST hiccups, analysts back HUL, Britannia, Marico^[1].

As the sector transitions into the second half of the financial year 2026 (H2FY26), analysts anticipate a rebound in seasonal demand, supported by festival seasons and improved consumer confidence. This optimism is bolstered by the supportive government policies and the resilience of top-tier companies within the consumer sector September quarter set for GST hiccups, analysts back HUL, Britannia, Marico^[1].