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5401

Varun Beverages BSE:540180 Stock Report

Last Price

₹794.30

Market Cap

₹515.9b

7D

3.2%

1Y

65.6%

Updated

03 Jul, 2022

Data

Company Financials +
540180 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance6/6
Financial Health4/6
Dividends2/6

540180 Stock Overview

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.

Varun Beverages Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Varun Beverages
Historical stock prices
Current Share Price₹794.30
52 Week High₹808.65
52 Week Low₹473.33
Beta0.64
1 Month Change8.35%
3 Month Change25.07%
1 Year Change65.61%
3 Year Change182.66%
5 Year Change405.71%
Change since IPO480.38%

Recent News & Updates

Shareholder Returns

540180IN BeverageIN Market
7D3.2%2.8%0.6%
1Y65.6%25.5%-0.3%

Return vs Industry: 540180 exceeded the Indian Beverage industry which returned 25.5% over the past year.

Return vs Market: 540180 exceeded the Indian Market which returned -0.3% over the past year.

Price Volatility

Is 540180's price volatile compared to industry and market?
540180 volatility
540180 Average Weekly Movement5.0%
Beverage Industry Average Movement5.6%
Market Average Movement6.8%
10% most volatile stocks in IN Market9.8%
10% least volatile stocks in IN Market4.4%

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.

About the Company

FoundedEmployeesCEOWebsite
199510,700n/ahttps://www.varunpepsi.com

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 manufactures, bottles, distributes, and sells a range of CSDs under the Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Seven-Up Nimbooz Masala Soda, Evervess Soda, Duke’s Soda, Sting, Pepsi Black, Mountain Dew Ice, Slice Fizzy, and Teem brands. It also produces and distributes NCBs under the of Tropicana Slice, Tropicana Juices, Seven-Up Nimbooz, Gatorade, and Quaker Oats Milk brand names, as well as packaged drinking water under the Aquafina and Aquavess brand names.

Varun Beverages Fundamentals Summary

How do Varun Beverages's earnings and revenue compare to its market cap?
540180 fundamental statistics
Market Cap₹515.94b
Earnings (TTM)₹8.19b
Revenue (TTM)₹94.10b

63.0x

P/E Ratio

5.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
540180 income statement (TTM)
Revenue₹94.10b
Cost of Revenue₹44.15b
Gross Profit₹49.95b
Other Expenses₹41.76b
Earnings₹8.19b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)12.61
Gross Margin53.08%
Net Profit Margin8.70%
Debt/Equity Ratio80.7%

How did 540180 perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

13%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 540180 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 540180?

Other financial metrics that can be useful for relative valuation.

540180 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.8x
Enterprise Value/EBITDA30.3x
PEG Ratio2.8x

Price to Earnings Ratio vs Peers

How does 540180's PE Ratio compare to its peers?

540180 PE Ratio vs Peers
The above table shows the PE ratio for 540180 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average92.2x
MCDOWELL-N United Spirits
67.5x18.1%₹559.1b
532478 United Breweries
108x25.4%₹394.6b
542802 Galactico Services
141.4xn/a₹6.4b
531642 Marico
51.8x13.9%₹634.6b
540180 Varun Beverages
63x22.2%₹515.9b

Price-To-Earnings vs Peers: 540180 is good value based on its Price-To-Earnings Ratio (63x) compared to the peer average (92.2x).


Price to Earnings Ratio vs Industry

How does 540180's PE Ratio compare vs other companies in the Asian Beverage Industry?

Price-To-Earnings vs Industry: 540180 is expensive based on its Price-To-Earnings Ratio (63x) compared to the Indian Beverage industry average (19.5x)


Price to Earnings Ratio vs Fair Ratio

What is 540180's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

540180 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio63x
Fair PE Ratio32.7x

Price-To-Earnings vs Fair Ratio: 540180 is expensive based on its Price-To-Earnings Ratio (63x) compared to the estimated Fair Price-To-Earnings Ratio (32.7x).


Share Price vs Fair Value

What is the Fair Price of 540180 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 540180 (₹794.3) is trading above our estimate of fair value (₹370.65)

Significantly Below Fair Value: 540180 is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: 540180 is poor value based on its PEG Ratio (2.8x)


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Future Growth

How is Varun Beverages forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


22.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540180's forecast earnings growth (22.2% per year) is above the savings rate (6.8%).

Earnings vs Market: 540180's earnings (22.2% per year) are forecast to grow faster than the Indian market (17.3% per year).

High Growth Earnings: 540180's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 540180's revenue (12.3% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: 540180's revenue (12.3% 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 (24.5%)


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Past Performance

How has Varun Beverages performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


23.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 540180 has high quality earnings.

Growing Profit Margin: 540180's current net profit margins (8.7%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: 540180's earnings have grown significantly by 23% per year over the past 5 years.

Accelerating Growth: 540180's earnings growth over the past year (103.1%) exceeds its 5-year average (23% per year).

Earnings vs Industry: 540180 earnings growth over the past year (103.1%) exceeded the Beverage industry 29.6%.


Return on Equity

High ROE: 540180's Return on Equity (21%) is considered high.


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Financial Health

How is Varun Beverages's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 540180's short term assets (₹25.5B) do not cover its short term liabilities (₹30.2B).

Long Term Liabilities: 540180's short term assets (₹25.5B) exceed its long term liabilities (₹23.6B).


Debt to Equity History and Analysis

Debt Level: 540180's net debt to equity ratio (77.1%) is considered high.

Reducing Debt: 540180's debt to equity ratio has reduced from 85.5% to 80.7% over the past 5 years.

Debt Coverage: 540180's debt is well covered by operating cash flow (36.4%).

Interest Coverage: 540180's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet


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Dividend

What is Varun Beverages's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.21%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 540180's dividend (0.21%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: 540180's dividend (0.21%) is low compared to the top 25% of dividend payers in the Indian market (1.86%).


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 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (13.2%), 540180's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (27.3%), 540180's dividend payments are well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

Varun Beverages has no CEO, or we have no data on them.


Leadership Team

Experienced Management: 540180's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: 540180's board of directors are considered experienced (6.5 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 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
  • Implied Market Cap: ₹515.937b
  • Shares outstanding: 649.55m
  • Website: https://www.varunpepsi.com

Number of Employees


Location

  • Varun Beverages Limited
  • RJ Corp House
  • Plot No. 31
  • Gurugram
  • Haryana
  • 122002
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.