1. Is Varun Beverages Ltd a good quality company?
Past 10 year's financial track record analysis by Moneyworks4me indicates that Varun Beverages Ltd is a average quality company.
2. Is Varun Beverages Ltd 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.
3. Is Varun Beverages Ltd a good buy now?
The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Varun Beverages Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation ⓘ
Value Creation Index Colour Code Guide ⓘ
|ROCE % ⓘ||5.1%||3.3%||4.2%||8.5%||10.7%||8.7%||10.9%||13%||8.7%||11.5%||-|
|Value Creation Index ⓘ||-0.6||-0.7||-0.6||-0.2||-0.2||-0.4||-0.2||0.2||-0.2||0.0||-|
Growth Parameters ⓘ
Growth Parameters Colour Code Guide ⓘ
|YoY Gr. Rt. %||-||17.5%||18.3%||35.6%||13.8%||3.7%||27.5%||39.7%||-9.5%||36.8%||-|
|Adj EPS ⓘ||0.6||-1||-0.5||2.6||0.8||3.5||5.7||8.1||5.9||10.5||22.2|
|YoY Gr. Rt. %||-||-267.2%||NA||NA||-68.6%||331.3%||63.8%||43.2%||-27.3%||77.7%||-|
|BVPS (₹) ⓘ||3.8||3.9||3.2||5||27.5||28.7||32.4||51.2||54.3||62.8||80.2|
|Adj Net Profit ⓘ||26||-44||-20.6||115||49.5||213||348||525||382||679||1,439|
|Cash Flow from Ops. ⓘ||280||297||431||555||826||620||1,000||1,308||1,012||1,231||-|
|Debt/CF from Ops. ⓘ||6.9||7.9||5.6||3.7||2.7||4.3||2.8||2.6||3.2||2.7||-|
CAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Adj EPS ⓘ||37.9%||67.2%||22.8%||77.7%|
Key Financial Parameters ⓘ
Performance Ratio Colour Code Guide ⓘ
|Return on Equity % ⓘ||15.2||-22.7||-7.4||22.6||4.2||12.3||18.5||19.7||11.2||17.9||31|
|Op. Profit Mgn % ⓘ||12.8||13.8||15.5||18.8||21||21.1||21.5||21.7||19||19.2||20.8|
|Net Profit Mgn % ⓘ||1.5||-2.1||-0.9||3.4||1.4||5.4||6.9||7.4||6.4||8.3||11.2|
|Debt to Equity ⓘ||11.3||13.3||7||3.1||1.3||1.5||1.4||1||0.9||0.8||-|
|Working Cap Days ⓘ||0||89||72||66||72||80||77||60||82||83||0|
|Cash Conv. Cycle ⓘ||0||28||19||20||20||24||23||13||20||26||0|
Return on Equity has increased versus last 3 years average to 31.00%
Sales growth is growing at healthy rate in last 3 years 20.01%
Net Profit is growing at healthy rate in last 3 years 22.75%
Debt to equity has declined versus last 3 years average to 0.82
Sales growth is good in last 4 quarters at 48.03%
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|TTM EPS (₹)||18.3||22.2|
|TTM Sales (₹ Cr.)||10,153||12,898|
|BVPS (₹.) ⓘ||86.5||80.2|
|Reserves (₹ Cr.) ⓘ||4,968||4,561|
|From the Market|
|52 Week Low / High (₹)||545.27 / 1353.35|
|All Time Low / High (₹)||101.11 / 1353.35|
|Market Cap (₹ Cr.)||88,160|
|Equity (₹ Cr.)||649.6|
|Face Value (₹)||10|
|Industry PE ⓘ||64.3|
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.
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-
Packaged Drinking Water-