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VBL

Varun Beverages NSEI:VBL Stock Report

Last Price

₹1.08k

Market Cap

₹467.1b

7D

-2.3%

1Y

61.1%

Updated

23 May, 2022

Data

Company Financials +
VBL fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance6/6
Financial Health4/6
Dividends2/6

VBL 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₹1,079.05
52 Week High₹1,153.95
52 Week Low₹665.83
Beta0.64
1 Month Change3.77%
3 Month Change17.60%
1 Year Change61.11%
3 Year Change159.82%
5 Year Change404.81%
Change since IPO428.37%

Recent News & Updates

May 19
Should You Be Adding Varun Beverages (NSE:VBL) To Your Watchlist Today?

Should You Be Adding Varun Beverages (NSE:VBL) To Your Watchlist Today?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Apr 03
Varun Beverages (NSE:VBL) Has More To Do To Multiply In Value Going Forward

Varun Beverages (NSE:VBL) Has More To Do To Multiply In Value Going Forward

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

VBLIN BeverageIN Market
7D-2.3%-1.4%2.1%
1Y61.1%38.8%8.6%

Return vs Industry: VBL exceeded the Indian Beverage industry which returned 41.7% over the past year.

Return vs Market: VBL exceeded the Indian Market which returned 9.5% over the past year.

Price Volatility

Is VBL's price volatile compared to industry and market?
VBL volatility
VBL Average Weekly Movement5.2%
Beverage Industry Average Movement6.2%
Market Average Movement7.0%
10% most volatile stocks in IN Market9.7%
10% least volatile stocks in IN Market4.6%

Stable Share Price: VBL is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: VBL'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?
VBL fundamental statistics
Market Cap₹467.09b
Earnings (TTM)₹8.19b
Revenue (TTM)₹94.10b

57.0x

P/E Ratio

5.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VBL 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)18.91
Gross Margin53.08%
Net Profit Margin8.70%
Debt/Equity Ratio80.7%

How did VBL perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

13%

Payout Ratio

Valuation

Is Varun Beverages undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


57.03x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: VBL (₹1079.05) is trading above our estimate of fair value (₹525.88)

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


Price To Earnings Ratio

PE vs Industry: VBL is poor value based on its PE Ratio (57x) compared to the Indian Beverage industry average (19.8x).

PE vs Market: VBL is poor value based on its PE Ratio (57x) compared to the Indian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: VBL is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: VBL is overvalued based on its PB Ratio (11.4x) compared to the IN Beverage industry average (3.1x).


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: VBL's forecast earnings growth (22.2% per year) is above the savings rate (6.7%).

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

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

Revenue vs Market: VBL's revenue (12.3% per year) is forecast to grow faster than the Indian market (11.7% per year).

High Growth Revenue: VBL'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: VBL's Return on Equity is forecast to be high in 3 years time (24.5%)


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: VBL has high quality earnings.

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: VBL earnings growth over the past year (103.1%) exceeded the Beverage industry 72.1%.


Return on Equity

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


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: VBL's short term assets (₹25.5B) do not cover its short term liabilities (₹30.2B).

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet


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


0.23%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VBL's dividend (0.23%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.36%).

High Dividend: VBL's dividend (0.23%) is low compared to the top 25% of dividend payers in the Indian market (1.6%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, VBL has been paying a dividend for less than 10 years.

Growing Dividend: VBL'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%), VBL's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

0.8yrs

Average management tenure


CEO

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


Leadership Team

Experienced Management: VBL's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: VBL's board of directors are considered experienced (6.3 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: VBL
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Soft Drinks
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: ₹467.091b
  • Shares outstanding: 433.03m
  • 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 Analysis2022/05/23 00:00
End of Day Share Price2022/05/23 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.