Varun Beverages
Market Cap
₹180.8b
Last Updated
2019/10/18 12:51 UTC
Data Sources
Company Financials +
Executive Summary
Varun Beverages Limited operates as the franchisee of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo.
Snowflake
Fundamentals
Solid track record with reasonable growth potential.
Share Price & News
How has Varun Beverages's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
3.2%
540180
4.4%
IN Beverage
3.2%
IN Market
1 Year Return
24.2%
540180
14.0%
IN Beverage
5.6%
IN Market
Return vs Industry: 540180 exceeded the Indian Beverage industry which returned 14% over the past year.
Return vs Market: 540180 exceeded the Indian Market which returned 5.6% over the past year.
Shareholder returns
| 540180 | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.2% | 4.4% | 3.2% |
| 30 Day | 2.7% | 5.0% | 6.0% |
| 90 Day | 4.6% | 3.8% | 2.0% |
| 1 Year | 24.7%24.2% | 14.2%14.0% | 7.8%5.6% |
| 3 Year | n/a | 37.1%36.7% | 22.6%16.3% |
| 5 Year | n/a | 48.9%48.4% | 43.1%29.6% |
Price Volatility Vs. Market
How volatile is Varun Beverages's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 year ago | Simply Wall St
Is Varun Beverages Limited (BOM:540180) Undervalued After Accounting For Its Future Growth?Valuation
Is Varun Beverages undervalued compared to its fair value and its price relative to the market?
42.02x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Undervalued: 540180 (₹641.5) is trading above our estimate of fair value (₹371.51)
Significantly Undervalued: 540180 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 540180 is poor value based on its PE Ratio (42x) compared to the Beverage industry average (14x).
PE vs Market: 540180 is poor value based on its PE Ratio (42x) compared to the Indian market (13.3x).
Price to Earnings Growth Ratio
Low PEG Ratio: 540180 is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: 540180 is overvalued based on its PB Ratio (7x) compared to the IN Beverage industry average (1.4x).
Next Steps
Future Growth
How is Varun Beverages forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
25.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 540180's forecast earnings growth (25.9% per year) is above the savings rate (7.6%).
Earnings vs Market: 540180's earnings (25.9% per year) are forecast to grow faster than the Indian market (18.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 540180's revenue (17.4% per year) is forecast to grow faster than the Indian market (11.3% per year).
High Growth Revenue: 540180's revenue (17.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: 540180's Return on Equity is forecast to be low in 3 years time (19%).
Next Steps
Past Performance
How has Varun Beverages performed over the past 5 years?
43.9%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: 540180 has become profitable over the past 5 years, growing earnings by 43.9% per year.
Accelerating Growth: 540180's earnings growth over the past year (48.3%) exceeds its 5-year average (43.9% per year).
Earnings vs Industry: 540180 earnings growth over the past year (48.3%) exceeded the Beverage industry 15.8%.
Return on Equity
High ROE: 540180's Return on Equity (16.7%) is considered low.
Return on Assets
ROA vs Industry: 540180 has a higher Return on Assets than the Beverage industry average last year.
Return on Capital Employed
ROCE Improving: 540180 has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Varun Beverages's financial position?
Financial Position Analysis
Short Term Liabilities: 540180's short term assets (₹17.2B) do not cover its short term liabilities (₹24.6B)
Long Term Liabilities: 540180's short term assets (17.2B) do not cover its long term liabilities (35.1B)
Debt to Equity History and Analysis
Debt Level: 540180's debt to equity ratio (129.9%) is considered high
Reducing Debt: 540180's debt to equity ratio has reduced from 850.5% to 129.9% over the past 5 years.
Debt Coverage: 540180's debt is well covered by operating cash flow (38.8%).
Interest Coverage: 540180's interest payments on its debt are well covered by EBIT (4.1x coverage).
Balance Sheet
Inventory Level: 540180 has a high level of physical assets or inventory.
Debt Coverage by Assets: 540180's debt is not covered by short term assets (assets are 0.5x debt).
Next Steps
Dividend
What is Varun Beverages's current dividend yield, its reliability and sustainability?
0.26%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: 540180's dividend (0.26%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).
High Dividend: 540180's dividend (0.26%) is low compared to the top 25% of dividend payers in the Indian market (2.43%).
Stable Dividend: 540180 is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.
Growing Dividend: 540180 is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: 540180 is not paying a notable dividend for the Indian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 540180's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.
Next Steps
Management
What is the CEO of Varun Beverages's salary, the management and board of directors tenure and is there insider trading?
1.7yrs
Average board tenure
CEO
Kapil Agarwal (55yo)
0yrs
Tenure
₹47,510,000
Compensation
Mr. Kapil Agarwal serves as the Chief Executive Officer of Varun Beverages Limited and also has been its Whole-time Director since 2012. He joined Varun Beverages Limited since April November 01, 2004. Mr. ...
CEO Compensation Analysis
Compensation vs. Market: Insufficient data to establish whether Kapil's total compensation is reasonable compared to companies of similar size in the Indian market.
Compensation vs Earnings: Kapil's compensation has been consistent with company performance over the past year.
Board Age and Tenure
1.7yrs
Average Tenure
59yo
Average Age
Experienced Board: 540180's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: 540180 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chairman of the Board Non-Executive Chairman |
| Shares | 1,300,000 |
| Max Price | ₹630.06 |
| Entity | Company |
| Shares | 2,700,000 |
| Max Price | ₹630.01 |
| Entity | Individual |
| Shares | 3,081 |
| Max Price | ₹620.76 |
| Entity | Individual |
| Shares | 3,750 |
| Max Price | ₹543.57 |
| Entity | Individual |
| Shares | 4,500 |
| Max Price | ₹549.15 |
| Entity | Individual |
| Shares | 3,000 |
| Max Price | ₹521.96 |
| Entity | Individual |
| Role | Other Key Executive Executive Director |
| Shares | 3,000 |
| Max Price | ₹478.97 |
| Entity | Individual |
| Shares | 6,000 |
| Max Price | ₹510.43 |
| Entity | Individual |
| Shares | 6,000 |
| Max Price | ₹512.96 |
Ownership Breakdown
Management Team
Ravi Batra (47yo)
Chief Risk Officer
- Tenure: 0yrs
- Compensation: ₹7.46m
Sugato Palit (47yo)
Chief Human Resources Officer
- Tenure: 0yrs
Varun Ravi Jaipuria (31yo)
Whole-Time Director
- Tenure: 0yrs
- Compensation: ₹31.26m
Raj Gandhi (62yo)
Whole-Time Director
- Tenure: 0yrs
- Compensation: ₹48.72m
Kapil Agarwal (55yo)
CEO & Whole-Time Director
- Tenure: 0yrs
- Compensation: ₹47.51m
Kamal Karnatak (46yo)
Senior Vice President of Information Technology
- Tenure: 0yrs
Rajinder Jeet Bagga (56yo)
COO & Whole-Time Director
- Tenure: 0.4yrs
Sudin Kumar Gaunker (47yo)
Chief Operating Officer
- Tenure: 0yrs
Vivek Gupta (55yo)
Executive Director
- Tenure: 0yrs
Bhupender Singh (54yo)
Senior Vice President
- Tenure: 0yrs
Board Members
Naresh Trehan (73yo)
Non-Executive & Independent Director
- Tenure: 3.8yrs
Ravi Jaipuria (64yo)
Non-Executive Chairman
- Tenure: 0yrs
Varun Ravi Jaipuria (31yo)
Whole-Time Director
- Tenure: 0yrs
- Compensation: ₹31.26m
Raj Gandhi (62yo)
Whole-Time Director
- Tenure: 0yrs
- Compensation: ₹48.72m
Kapil Agarwal (55yo)
CEO & Whole-Time Director
- Tenure: 0yrs
- Compensation: ₹47.51m
Pradeep Sardana (69yo)
Non-Executive & Independent Director
- Tenure: 3.6yrs
- Compensation: ₹300.00k
Rajinder Jeet Bagga (56yo)
COO & Whole-Time Director
- Tenure: 0.4yrs
Sita Khosla (55yo)
Non-Executive Independent Director
- Tenure: 1.7yrs
- Compensation: ₹300.00k
Rashmi Dhariwal
Non-Executive Independent Director
- Tenure: 1.6yrs
- Compensation: ₹800.00k
Ravi Gupta
Non-Executive Independent Director
- Tenure: 1.6yrs
- Compensation: ₹700.00k
Company Information
Varun Beverages Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Varun Beverages Limited
- Ticker: 540180
- Exchange: BSE
- Founded: 1995
- Industry: Soft Drinks
- Sector: Food, Beverage & Tobacco
- Market Cap: ₹180.849b
- Shares outstanding: 288.69m
- Website: https://www.varunpepsi.com
Number of Employees
Location
- Varun Beverages Limited
- RJ Corp House
- Plot No. 31
- Gurugram
- Haryana
- 122002
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VBL | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Nov 2016 |
| 540180 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Nov 2016 |
Biography
Varun Beverages Limited operates as the franchisee of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo. The company produces, bottles, and distribute ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/18 12:51 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.