Is Varun Beverages a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Varun Beverages Ltd is a good quality company .

Is Varun Beverages undervalued or overvalued?

The key valuation ratios of Varun Beverages Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone .

What is Varun Beverages share price return in the past 10 years?

Data is not available for this company

Is Varun Beverages a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Varun Beverages Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

Varun Beverages Ltd - Stock Valuation and Financial Performance

Name: Varun Beverages
Brand: Varun Beverages

BSE: 540180 | NSE: VBL | Consumer Food | Large Cap

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Varun Beverages Share Price

₹612.20 -16.00 -2.55%
as on 20-Dec'24 16:59

10 Year X-Ray of Varun Beverages:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Standalone Basis ^P Consolidated Basis ^P

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Dec'14	Dec'15	Dec'16	Dec'17	Dec'18	Dec'19	Dec'20	Dec'21	Dec'22	Dec'23	TTM
ROCE % ⓘ	7.2%	13.1%	15.4%	12.1%	14.2%	17.7%	9.7%	17.1%	27.5%	29%	-
Value Creation Index ⓘ	-0.4	0.2	0.1	-0.1	0.1	0.6	-0.1	0.5	1.4	1.6	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	2,502	3,394	3,861	4,004	5,105	7,130	6,450	8,823	13,173	16,043	19,395
Sales YoY Gr.	-	35.6%	13.8%	3.7%	27.5%	39.7%	-9.5%	36.8%	49.3%	21.8%	-
Adj EPS ⓘ	-0.1	0.5	0.2	0.7	1.1	1.6	1.2	2.1	4.8	6.6	7.5
YoY Gr.	-	NA	-68.6%	331.3%	63.8%	43.4%	-27.2%	77.1%	127.3%	39.6%	-
BVPS (₹) ⓘ	0.6	1	5.5	5.7	6.5	10.3	10.9	12.6	15.7	21.3	49.4
Adj Net Profit ⓘ	-20.6	115	49.5	213	348	525	382	679	1,542	2,155	2,543
Cash Flow from Ops. ⓘ	431	555	826	620	1,000	1,308	1,012	1,231	1,790	2,391	-
Debt/CF from Ops. ⓘ	5.6	3.7	2.7	4.3	2.8	2.6	3.2	2.7	2.1	2.2	-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	22.9%	25.7%	35.5%	21.8%
Adj EPS ⓘ	NA	42.5%	77.8%	39.6%
BVPSⓘ	47.9%	26.9%	25.3%	35.9%
Share Price	-	58.2%	76.2%	18.5%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Dec'14	Dec'15	Dec'16	Dec'17	Dec'18	Dec'19	Dec'20	Dec'21	Dec'22	Dec'23	TTM
Return on Equity % ⓘ	-7.4	22.6	4.2	12.3	18.5	19.7	11.2	17.9	33.6	35.8	21.3
Op. Profit Mgn % ⓘ	15.5	19.1	21	21.1	21.5	21.7	19	19.2	21.8	23.5	23.5
Net Profit Mgn % ⓘ	-0.9	3.4	1.4	5.4	7	7.4	6.4	8.3	12.1	13.7	13.1
Debt to Equity ⓘ	7	3.1	1.3	1.5	1.4	1	0.9	0.8	0.7	0.8	-
Working Cap Days ⓘ	72	66	72	79	75	60	82	83	83	90	52
Cash Conv. Cycle ⓘ	19	20	20	24	23	13	20	26	27	30	-1

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 35.49%

Net Profit is growing at healthy rate in last 3 years 77.78%

Debt to equity has declined versus last 3 years average to 0.75

Sales growth is good in last 4 quarters at 21.55%

Return on Equity has declined versus last 3 years average to 21.30%

Latest Financials - Varun Beverages Ltd.

	Standalone	Consolidated
TTM EPS (₹)	6.6	7.5
TTM Sales (₹ Cr.)	14,181	19,395
BVPS (₹.) ⓘ	48.9	49.4
Reserves (₹ Cr.) ⓘ	16,004	16,031
P/BV ⓘ	12.51	12.39
PE ⓘ	92.82	81.46

From the Market
52 Week Low / High (₹)	472.00 / 682.84
All Time Low / High (₹)	20.22 / 682.84
Market Cap (₹ Cr.)	2,07,016
Equity (₹ Cr.)	676.3
Face Value (₹)	2
Industry PE ⓘ	64.6

Management X-Ray of Varun Beverages:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.04

* Pledged shares as % of Promoter's holding (%)

Valuation of Varun Beverages

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Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of Varun Beverages

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Dec'14	Dec'15	Dec'16	Dec'17	Dec'18	Dec'19	Dec'20	Dec'21	Dec'22	Dec'23
Sales	2,502	3,394	3,861	4,004	5,105	7,130	6,450	8,823	13,173	16,043
Operating Expenses ⓘ	2,116	2,756	3,063	3,165	4,088	5,667	5,236	7,146	10,367	12,410
Manufacturing Costs	380	502	616	596	819	1,103	1,140	1,404	2,011	2,379
Material Costs	1,376	1,716	1,738	1,810	2,244	3,219	2,764	4,035	6,261	7,405
Employee Cost	217	324	421	463	583	811	890	1,008	1,217	1,447
Other Costs ⓘ	143	213	289	297	442	534	442	700	878	1,180
Operating Profit ⓘ	387	638	798	838	1,017	1,462	1,215	1,677	2,806	3,633
Operating Profit Margin (%)	15.4%	18.8%	20.7%	20.9%	19.9%	20.5%	18.8%	19.0%	21.3%	22.6%
Other Income ⓘ	15	40	36	13	22	43	37	68	39	79
Interest ⓘ	187	170	435	215	223	324	294	207	204	292
Depreciation ⓘ	210	317	322	347	385	489	529	531	617	681
Exceptional Items ⓘ	0	0	0	0	0	0	-67	0	0	0
Profit Before Tax ⓘ	4	191	79	291	434	696	363	1,007	2,024	2,739
Tax ⓘ	25	79	31	77	134	224	5	261	474	638
Profit After Tax	-21	112	48	214	300	472	357	746	1,550	2,102
PAT Margin (%)	-0.8%	3.3%	1.2%	5.3%	5.9%	6.6%	5.5%	8.5%	11.8%	13.1%
Adjusted EPS (₹)	-0.1	0.5	0.1	0.7	1.0	1.4	1.0	2.1	4.6	6.3
Dividend Payout Ratio (%)	0%	0%	0%	22%	16%	15%	22%	16%	15%	16%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Dec'14	Dec'15	Dec'16	Dec'17	Dec'18	Dec'19	Dec'20	Dec'21	Dec'22	Dec'23
Equity and Liabilities
Shareholders Fund	343	674	1,693	1,769	1,998	3,328	3,524	4,080	5,099	6,928
Share Capital ⓘ	334	584	182	183	183	289	289	433	650	650
Reserves ⓘ	9	91	1,511	1,587	1,816	3,040	3,235	3,647	4,450	6,278
Minority Interest	0	0	-13	-1	8	31	65	117	113	148
Debt	2,139	1,832	1,629	2,045	2,358	2,823	2,693	2,442	2,355	4,192
Long Term Debt	1,630	1,580	1,218	1,691	1,980	2,355	1,980	1,813	1,727	3,189
Short Term Debt	509	252	411	353	378	467	714	628	628	1,003
Trade Payables	181	185	275	191	317	478	511	712	824	758
Others Liabilities ⓘ	629	1,740	1,240	1,272	1,317	1,716	1,654	2,229	3,227	3,161
Total Liabilities ⓘ	3,292	4,431	4,824	5,276	5,998	8,376	8,447	9,579	11,618	15,187
Fixed Assets
Gross Block	3,223	4,632	5,159	5,635	6,172	8,745	9,033	9,410	10,441	12,445
Accumulated Depreciation	868	1,137	1,443	1,654	1,785	2,265	2,624	3,099	3,509	4,036
Net Fixed Assetsⓘ	2,355	3,496	3,715	3,981	4,387	6,479	6,409	6,311	6,932	8,409
CWIP ⓘ	25	38	96	145	352	64	67	497	607	1,922
Investmentsⓘ	304	3	7	8	11	0	0	0	0	21
Inventories	289	425	490	439	578	882	929	1,448	1,994	2,151
Trade Receivables	97	98	131	150	128	173	242	221	299	359
Cash Equivalents	34	58	66	94	93	171	190	337	285	460
Others Assetsⓘ	187	314	320	458	448	608	611	766	1,501	1,865
Total Assets ⓘ	3,292	4,431	4,824	5,276	5,998	8,376	8,447	9,579	11,618	15,187

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Dec'14	Dec'15	Dec'16	Dec'17	Dec'18	Dec'19	Dec'20	Dec'21	Dec'22	Dec'23
Cash Flow From Operating Activity ⓘ	431	555	826	620	1,000	1,308	1,012	1,231	1,790	2,391
PBT ⓘ	4	191	77	290	431	692	363	1,007	2,024	2,740
Adjustment ⓘ	393	454	743	584	692	821	838	618	725	992
Changes in Working Capital ⓘ	44	-42	64	-197	-50	-85	-111	-269	-585	-673
Tax Paid ⓘ	-11	-48	-58	-57	-73	-120	-78	-124	-373	-668
Cash Flow From Investing Activity ⓘ	-500	-300	-1,048	-745	-873	-2,319	-471	-1,011	-1,705	-3,290
Capex	-212	-610	-780	-516	-809	-733	-536	-815	-1,750	-3,194
Net Investments	-302	307	0	-140	-49	-1,633	0	0	0	-31
Others ⓘ	14	3	-268	-89	-15	47	65	-195	45	-65
Cash Flow From Financing Activityⓘ	58	-236	230	159	-84	1,107	-574	-178	-18	985
Net Proceeds from Shares ⓘ	-40	0	701	4	1	900	0	0	0	5
Net Proceeds from Borrowing ⓘ	-87	-409	17	484	732	560	-460	214	340	1,125
Interest Paid ⓘ	-186	-141	-219	-156	-189	-303	-277	-179	-172	-269
Dividend Paid ⓘ	0	0	0	-46	-46	-69	-72	-108	-162	-227
Others ⓘ	371	314	-269	-129	-583	20	236	-104	-24	352
Net Cash Flow ⓘ	-11	19	8	33	42	96	-33	43	67	86

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Dec'14	Dec'15	Dec'16	Dec'17	Dec'18	Dec'19	Dec'20	Dec'21	Dec'22	Dec'23
Ratios
ROE (%)	-13.21	60.84	5.01	12.37	15.92	17.73	10.43	19.62	33.77	34.95
ROCE (%)	7.21	13.09	15.44	12.13	14.23	17.67	9.73	17.14	27.47	28.97
Asset Turnover Ratio	0.9	1.01	0.98	0.89	0.93	1.2	0.91	1.03	1.3	1.24
PAT to CFO Conversion(x)	N/A	4.96	17.21	2.9	3.33	2.77	2.83	1.65	1.15	1.14
Working Capital Days
Receivable Days	11	9	9	11	10	6	10	9	7	7
Inventory Days	35	33	37	38	36	31	43	47	46	45
Payable Days	42	39	48	47	41	45	65	55	45	39

Varun Beverages Ltd Stock News

Varun Beverages Ltd FAQs

What is the share price of Varun Beverages?

Company share prices are keep on changing according to the market conditions. The closing price of Varun Beverages on 20-Dec-2024 16:59 is ₹612.2.

What is the market cap of Varun Beverages?

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 20-Dec-2024 16:59 the market cap of Varun Beverages stood at ₹2,07,016.1.

What is the P/E ratio of Varun Beverages?

The latest P/E ratio of Varun Beverages as of 20-Dec-2024 16:59 is 92.82.

What is the P/B ratio of Varun Beverages?

The latest P/B ratio of Varun Beverages as of 20-Dec-2024 16:59 is 12.51.

What is the 52-week high and low of Varun Beverages?

The 52-week high of Varun Beverages is ₹682.8 and the 52-week low is ₹472.0.

What is the TTM revenue of Varun Beverages?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Varun Beverages is ₹14,181 ( Cr.) .

About Varun Beverages Ltd

Varun Beverages is the second largest franchisee in the world (outside US) of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo and a key player in the beverage industry. The company produce and distribute a wide range of CSDs, as well as a large selection of NCBs, including packaged drinking water. PepsiCo CSD brands sold by the company include Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Seven-Up Nimbooz Masala Soda, Evervess Soda, Duke’s Soda and Sting. PepsiCo NCB brands sold by the company include Tropicana (100%, Essentials & Delight), Tropicana Slice, Tropicana Frutz, Seven-Up Nimbooz, Gatorade and Quaker Oat Milk as well as packaged drinking water under the brand Aquafina. In addition, the company also been granted the franchise for Ole brand of PepsiCo products in Sri Lanka.

The company has been associated with PepsiCo since the 1990s and has over two and half decades consolidated its business association with PepsiCo, increasing the number of PepsiCo licensed territories and sub-territories covered by the company, producing and distributing a wider range of PepsiCo beverages, introducing various SKUs in its portfolio, and expanding its distribution network. The company has been granted franchisees for various PepsiCo products spread across 27 States and 7 Union Territories (except Jammu & Kashmir and Andhra Pradesh) in India.

Although, India is the company’s largest market, it has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe. VBL has several manufacturing plants in India and in international geographies. In addition, the company has set up backward integration facilities for production of preforms, crowns, corrugated boxes, plastic crates and shrink-wrap films in certain of its production facilities to ensure operational efficiencies and quality standards. The company is part of the RJ Corp group, a diversified business conglomerate with interests in beverages, quick-service restaurants, dairy and healthcare.

Business area of the company

The company is franchisee of CSDs and NCBs sold under trademarks owned by PepsiCo in India and internationally.

Products

The company’s portfolio of beverage products includes some of the best recognized PepsiCo trademarks in the world. Its product portfolio includes CSDs and NCBs.

Carbonated Soft Drinks-

Pepsi-Cola
Seven-Up
Mountain Dew
Mirinda
Evervess

Non-Carbonated Beverages-

Tropicana Slice
Nimbooz
Tropicana Frutz

Packaged Drinking Water-

Aquafina

Awards

2009: The Company received BU Best Quality Plant Team Award for the production facility at Kosi.
2010: The Company received PepsiCo Amea Bronze Food Safety Award for the production facility at Greater Noida I.
2010: The Company received ISO 14001: 2004 certificate for the production facility at Jainpur.
2011: The Company received PepsiCo Amea Silver Food Safety Award for the production facility at Greater Noida I.
2011: The Company received PepsiCo Quality Excellence Bronze Award for the production facility at Kosi.
2011: The Company received ISO 14001:2004 certificate for the production facility at Bhiwadi.
2012: The Company received PepsiCo Amea Gold Food Safety Award for the production facility at Greater Noida I.
2012: The Company received ISO 14001:2004 certificate for the production facility at Kolkata.
2013: The Company received FSSC 22000:2010 certificate for the production facility at Greater Noida I.
2014: The Company received OHSAS 18001:2007 certificate for the production facility at Nuh.
2014: The Company received ISO 14001: 2004 certificate for the production facility at Nuh.
2014: The Company received CII National Award for Food Safety for the production facility at Nuh.
2015: The company received FSSC 22000 certificate for the production facilities at Goa, Greater Noida II and Kolkata.
2015: The Company received ISO 14001:2004, OHSAS 18001:2007 and ISO 9001:2008 certificates for the backward integration facility at Alwar.
2015: The Company received ISO 22000:2005 and ISO 9001:2008 certificates for the backward integration facility at Jaipur.
2015: The Company received AIB International certificate for the production facilities at Bhiwadi, Goa, Jainpur, Bazpur, Greater Noida II, Kolkata, Satharia, Kosi and Greater Noida I.
2018: National Best Employer Brand Award for 2018, by ET Now
2018: North India Best Employer Brand Award for 2018
2018: Nepal Best Employer Brand Award for 2018
2019: The Company received Corporate Governance Awards 2019 - Best FMCG Corporate Governance India by Capital Finance International (Cfi.co)
2019: Sri Lanka Best Employer Brand Award for 2019
2019: Bottler of the year 2019
2019: Best FMCG Corporate Governance India 2019

Milestones

1995: Incorporation of the company as public limited company.
1996: Started operation at Jaipur.
1999: Started operations in Alwar, Jodhpur and Kosi.
2004: Merger of DBL with the company pursuant to the order of High Court of Delhi dated October 6, 2004.
2013: Merger of VBIL with the company pursuant to the order of High Court of Delhi dated March 12, 2013.
2013: The company acquired the business of manufacturing and marketing of soft drink beverages and syrup mix in Delhi, India.
2015: Business transfer agreement through which the company acquired PepsiCo India’s business of manufacturing, marketing, selling and distributing soft drink beverages and syrup mix in the Indian states of Uttar Pradesh (excluding certain territories), Uttarakhand, Himachal Pradesh, Haryana (excluding certain territories) and the Union Territory of Chandigarh.
2015: Business transfer agreement through which the company acquired PepsiCo India’s business of manufacturing, marketing, selling and distributing soft drink beverages and syrup mix in Bazpur, Jainpur, Satharia and Panipat.
2015: The company acquired the business of selling and distribution of soft drinks beverages and syrup mix in one district undertaking situated in Punjab.
2016: The company acquired entire shareholding of Arctic International Private Limited in Varun Beverages Mozambique, Limitada.
2016: The company acquired entire shareholding of Arctic International Private Limited in Varun Beverages (Zambia) Limited.
2016: Incorporation of Varun Beverages (Zimbabwe) (Private) Limited.
2016: Acquisition of 85% of the shareholding of VBZPL.
2017: Concluded the acquisition of PepsiCo India’s previously franchised sub-territories of the State of Odisha and parts of Madhya Pradesh along with two manufacturing units at Bargarh (Odisha) and Mandideep (MP) w.e.f. September 27, 2017.
2017: Launched Pepsi Black, a zero calorie cola flavor CSD product currently available in 250ml cans and 250 ml nonreturnable glass bottles.
2017: Launched Sting for the next season, a carbonated energydrink available in 250ml cans and 250 ml PET bottles at a highly competitive price point as compared to other brands in the segment.
2018: Concluded the acquisition of PepsiCo India’s previously franchised sub-territory of the State of Chhattisgarh w.e.f. January 11, 2018
2018: Acquired franchisee rights of PepsiCo India’s previously franchised sub-territory of the State of Bihar w.e.f. January 17, 2018
2018: Acquired a manufacturing unit at Cuttack (Odisha) w.e.f. Jan 19, 2018
2018: Concluded the acquisition of PepsiCo India’s previously franchised sub-territory of the State of Jharkhand along with a manufacturing unit at Jamshedpur.
2018: Consolidation of 5 new sub-territories acquired in 2018 has yielded positive results with significant volume and margin expansion.
2018: Expanded juice portfolio with the launch of Fizzy drink in seven different flavors, leveraging the ‘Slice’ brand with wider recognition and strong brand value.
2018: Invested in setting-up a manufacturing facility in Pathankot to commence in-house production.
2019: Concluded the acquisition of PepsiCo India’s previously franchised territories of parts of Maharashtra (14 districts), parts of Karnataka (13 districts) and parts of Madhya Pradesh (3 districts) w.e.f. February 14, 2019.
2019: Entered into a binding agreement with PepsiCo India Holdings Private Limited (‘PepsiCo’) on February 18, 2019 to acquire franchise rights in South and West regions, subject to statutory approvals.
2019: PepsiCo divests West and South bottling franchise to Varun Beverages
2019: Introduced three variants of ambient temperature value-added dairy beverages - Belgian Chocolate, Cold Coffee, and Mango Shake - at a price of Rs 30 for 200ml PET bottle with a long shelf life of 180 days.
2019: Concluded the acquisition of PepsiCo India’s previously franchised territories of parts of Maharashtra (14 districts), parts of Karnataka (13 districts), and parts of Madhya Pradesh (3 districts).
2019: Concluded the acquisition of franchise rights in South and West regions from PepsiCo for a national bottling, sales, and distribution footprint in 7 States and 5 Union Territories of India w.e.f. May 1, 2019.