Varun Beverages
Market Cap
₹285.6b
Last Updated
2021/04/19 12:11 UTC
Data Sources
Company Financials +
Executive Summary
Varun Beverages Limited, together with its subsidiaries, operates as the franchisee of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo. More Details
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with questionable track record.
Similar Companies
Share Price & News
How has Varun Beverages's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 540180 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: 540180's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-5.3%
540180
-1.9%
IN Beverage
-2.2%
IN Market
1 Year Return
44.1%
540180
21.4%
IN Beverage
71.1%
IN Market
Return vs Industry: 540180 exceeded the Indian Beverage industry which returned 21.4% over the past year.
Return vs Market: 540180 underperformed the Indian Market which returned 71.1% over the past year.
Shareholder returns
| 540180 | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.3% | -1.9% | -2.2% |
| 30 Day | -3.9% | -3.8% | 0.4% |
| 90 Day | 6.8% | -7.8% | 7.1% |
| 1 Year | 44.6%44.1% | 21.6%21.4% | 73.7%71.1% |
| 3 Year | 120.9%118.6% | 2.9%2.5% | 28.0%20.4% |
| 5 Year | n/a | 28.6%28.1% | 87.2%71.5% |
Long-Term 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
2 years 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?
82.13x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 540180 (₹936) is trading above our estimate of fair value (₹532.63)
Significantly Below Fair Value: 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 (82.1x) compared to the IN Beverage industry average (30.5x).
PE vs Market: 540180 is poor value based on its PE Ratio (82.1x) compared to the Indian market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: 540180 is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: 540180 is overvalued based on its PB Ratio (7.7x) compared to the IN Beverage industry average (1.8x).
Future Growth
How is Varun Beverages forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
38.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 540180's forecast earnings growth (38.1% per year) is above the savings rate (7%).
Earnings vs Market: 540180's earnings (38.1% per year) are forecast to grow faster than the Indian market (23.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 540180's revenue (14.2% per year) is forecast to grow faster than the Indian market (14% per year).
High Growth Revenue: 540180's revenue (14.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 540180's Return on Equity is forecast to be high in 3 years time (22.8%)
Past Performance
How has Varun Beverages performed over the past 5 years?
25.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 540180 has high quality earnings.
Growing Profit Margin: 540180's current net profit margins (5.1%) are lower than last year (6.6%).
Past Earnings Growth Analysis
Earnings Trend: 540180's earnings have grown significantly by 25.9% per year over the past 5 years.
Accelerating Growth: 540180's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 540180 had negative earnings growth (-29.9%) over the past year, making it difficult to compare to the Beverage industry average (-15.2%).
Return on Equity
High ROE: 540180's Return on Equity (10%) is considered low.
Financial Health
How is Varun Beverages's financial position?
Financial Position Analysis
Short Term Liabilities: 540180's short term assets (₹18.0B) do not cover its short term liabilities (₹24.3B).
Long Term Liabilities: 540180's short term assets (₹18.0B) do not cover its long term liabilities (₹24.3B).
Debt to Equity History and Analysis
Debt Level: 540180's debt to equity ratio (89.3%) is considered high.
Reducing Debt: 540180's debt to equity ratio has reduced from 306.7% to 89.3% over the past 5 years.
Debt Coverage: 540180's debt is well covered by operating cash flow (31.6%).
Interest Coverage: 540180's interest payments on its debt are not well covered by EBIT (2.6x coverage).
Balance Sheet
Dividend
What is Varun Beverages's current dividend yield, its reliability and sustainability?
0.27%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 540180's dividend (0.27%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.43%).
High Dividend: 540180's dividend (0.27%) is low compared to the top 25% of dividend payers in the Indian market (1.9%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 540180 has been paying a dividend for less than 10 years.
Growing Dividend: 540180's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (21.9%), 540180's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 540180's dividends in 3 years are forecast to be well covered by earnings (16.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.1yrs
Average board tenure
CEO
Kapil Agarwal (56 yo)
no data
Tenure
₹68,340,000
Compensation
Mr. Kapil Agarwal serves as the Chief Executive Officer of Varun Beverages Limited and also has been its Director since January 1, 2012. He joined Varun Beverages Limited since April November 01, 2004. Mr....
CEO Compensation Analysis
Compensation vs Market: Kapil's total compensation ($USD917.03K) is above average for companies of similar size in the Indian market ($USD628.46K).
Compensation vs Earnings: Kapil's compensation has been consistent with company performance over the past year.
Board Members
Experienced Board: 540180's board of directors are considered experienced (5.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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: ₹285.585b
- 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
Biography
Varun Beverages Limited, together with its subsidiaries, operates as the franchisee of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo. The company ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/19 12:11 |
| End of Day Share Price | 2021/04/19 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.