Varun Beverages Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: April 4, 2025, 12:13 pm

Market Cap	1,80,727 Cr.
Current Price	534
High / Low	683/419
Stock P/E	68.2
Book Value	49.1
Dividend Yield	0.18 %
ROCE	24.8 %
ROE	22.5 %
Face Value	2.00
PEG Ratio	1.36

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for Varun Beverages Ltd

Competitors of Varun Beverages Ltd

Stock Name ⇩	Market Cap ⇩	Current Price ⇩	High / Low ⇩	Stock P/E ⇩	Book Value ⇩	Dividend Yield ⇩	ROCE ⇩	ROE ⇩	Face Value ⇩
Varun Beverages Ltd	1,80,727 Cr.	534	683/419	68.2	49.1	0.18 %	24.8 %	22.5 %	2.00
Industry Average	180,727.00 Cr	534.00		68.20	49.10	0.18%	24.80%	22.50%	2.00

All Competitor Stocks of Varun Beverages Ltd

Quarterly Result

Metric	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024
Sales	1,734	2,827	4,955	3,177	2,214	3,893	5,611	3,871	2,668	4,317	7,197	4,805	3,689
Expenses	1,527	2,296	3,704	2,478	1,907	3,095	4,101	2,989	2,249	3,329	5,206	3,654	3,110
Operating Profit	208	531	1,251	699	307	798	1,511	882	418	989	1,991	1,151	579
OPM %	12%	19%	25%	22%	14%	20%	27%	23%	16%	23%	28%	24%	16%
Other Income	1	9	10	11	9	10	42	19	9	8	44	24	45
Interest	37	47	46	45	47	63	69	62	74	94	129	119	109
Depreciation	129	131	153	153	180	172	172	171	166	188	242	257	261
Profit before tax	42	361	1,062	511	90	573	1,311	667	188	716	1,663	800	254
Tax %	22%	25%	24%	23%	9%	24%	23%	23%	24%	23%	24%	21%	23%
Net Profit	33	271	802	395	82	439	1,005	514	144	548	1,262	629	196
EPS in Rs	0.05	0.78	2.42	1.17	0.23	1.32	3.06	1.54	0.41	1.65	3.86	1.91	0.55

Last Updated: February 28, 2025, 8:44 pm

Below is a detailed analysis of the quarterly data for Varun Beverages Ltd based on the most recent figures (Dec 2024) and their trends compared to the previous period:

For Sales, as of Dec 2024, the value is ₹3,689.00 Cr.. The value appears to be declining and may need further review. It has decreased from 4,805.00 Cr. (Sep 2024) to ₹3,689.00 Cr., marking a decrease of 1,116.00 Cr..
For Expenses, as of Dec 2024, the value is ₹3,110.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 3,654.00 Cr. (Sep 2024) to ₹3,110.00 Cr., marking a decrease of 544.00 Cr..
For Operating Profit, as of Dec 2024, the value is ₹579.00 Cr.. The value appears to be declining and may need further review. It has decreased from 1,151.00 Cr. (Sep 2024) to ₹579.00 Cr., marking a decrease of 572.00 Cr..
For OPM %, as of Dec 2024, the value is 16.00%. The value appears to be declining and may need further review. It has decreased from 24.00% (Sep 2024) to 16.00%, marking a decrease of 8.00%.
For Other Income, as of Dec 2024, the value is ₹45.00 Cr.. The value appears strong and on an upward trend. It has increased from 24.00 Cr. (Sep 2024) to ₹45.00 Cr., marking an increase of 21.00 Cr..
For Interest, as of Dec 2024, the value is ₹109.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 119.00 Cr. (Sep 2024) to ₹109.00 Cr., marking a decrease of 10.00 Cr..
For Depreciation, as of Dec 2024, the value is ₹261.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 257.00 Cr. (Sep 2024) to ₹261.00 Cr., marking an increase of 4.00 Cr..
For Profit before tax, as of Dec 2024, the value is ₹254.00 Cr.. The value appears to be declining and may need further review. It has decreased from 800.00 Cr. (Sep 2024) to ₹254.00 Cr., marking a decrease of 546.00 Cr..
For Tax %, as of Dec 2024, the value is 23.00%. The value appears to be increasing, which may not be favorable. It has increased from 21.00% (Sep 2024) to 23.00%, marking an increase of 2.00%.
For Net Profit, as of Dec 2024, the value is ₹196.00 Cr.. The value appears to be declining and may need further review. It has decreased from 629.00 Cr. (Sep 2024) to ₹196.00 Cr., marking a decrease of 433.00 Cr..
For EPS in Rs, as of Dec 2024, the value is 0.55. The value appears to be declining and may need further review. It has decreased from 1.91 (Sep 2024) to 0.55, marking a decrease of 1.36.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: March 7, 2025, 9:27 pm

Metric	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales	2,115	2,502	3,394	3,861	4,004	5,105	7,130	6,450	8,823	13,173	16,043	20,008
Expenses	1,824	2,116	2,752	3,052	3,165	4,069	5,667	5,235	7,129	10,310	12,326	15,298
Operating Profit	291	387	642	810	838	1,036	1,462	1,215	1,694	2,863	3,717	4,710
OPM %	14%	15%	19%	21%	21%	20%	21%	19%	19%	22%	23%	24%
Other Income	19	14	36	27	14	6	47	-30	51	-18	-5	121
Interest	171	187	170	435	215	223	324	294	207	204	292	450
Depreciation	184	210	317	322	347	385	489	529	531	617	681	947
Profit before tax	-46	4	191	79	291	434	696	363	1,007	2,024	2,739	3,433
Tax %	-11%	658%	41%	39%	26%	31%	32%	1%	26%	23%	23%	23%
Net Profit	-40	-20	113	48	214	300	472	357	746	1,550	2,102	2,634
EPS in Rs	-0.18	-0.09	0.50	0.14	0.68	0.95	1.44	1.01	2.14	4.61	6.33	7.67
Dividend Payout %	0%	0%	0%	0%	22%	16%	15%	22%	16%	15%	16%	7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year
YoY Net Profit Growth (%)
Change in YoY Net Profit Growth (%)

No data available for trend analysis.

Growth

Compounded Sales Growth
10 Years:	23%
5 Years:	23%
3 Years:	31%
TTM:	25%

Compounded Profit Growth
10 Years:	63%
5 Years:	41%
3 Years:	55%
TTM:	25%

Stock Price CAGR
10 Years:	%
5 Years:	63%
3 Years:	62%
1 Year:	-10%

Return on Equity
10 Years:	23%
5 Years:	25%
3 Years:	28%
Last Year:	22%

Last Updated: Unknown

Balance Sheet

Last Updated: March 14, 2025, 4:13 pm

Month	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Equity Capital	134	134	134	182	183	183	289	289	433	650	650	676
Reserves	82	9	91	1,511	1,587	1,816	3,040	3,235	3,647	4,453	6,287	15,934
Borrowings	2,332	2,615	2,527	2,215	2,654	2,808	3,417	3,216	3,387	3,884	5,431	2,826
Other Liabilities	439	533	1,680	915	852	1,192	1,630	1,707	2,113	2,632	2,819	3,688
Total Liabilities	2,986	3,292	4,431	4,824	5,276	5,998	8,376	8,447	9,579	11,618	15,187	23,124
Fixed Assets	2,375	2,355	3,496	3,716	3,981	4,387	6,479	6,409	6,311	6,932	8,409	13,402
CWIP	27	25	38	96	145	352	64	67	497	607	1,922	1,167
Investments	1	304	3	7	8	11	0	0	0	0	21	60
Other Assets	583	608	894	1,006	1,141	1,247	1,833	1,972	2,772	4,079	4,835	8,496
Total Assets	2,986	3,292	4,431	4,824	5,276	5,998	8,376	8,447	9,579	11,618	15,187	23,124

Below is a detailed analysis of the balance sheet data for Varun Beverages Ltd based on the most recent figures (Dec 2024) and their trends compared to the previous period:

For Equity Capital, as of Dec 2024, the value is ₹676.00 Cr.. The value appears strong and on an upward trend. It has increased from 650.00 Cr. (Dec 2023) to ₹676.00 Cr., marking an increase of 26.00 Cr..
For Reserves, as of Dec 2024, the value is ₹15,934.00 Cr.. The value appears strong and on an upward trend. It has increased from 6,287.00 Cr. (Dec 2023) to ₹15,934.00 Cr., marking an increase of 9,647.00 Cr..
For Borrowings, as of Dec 2024, the value is ₹2,826.00 Cr.. The value appears to be improving (decreasing). Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has decreased from 5,431.00 Cr. (Dec 2023) to ₹2,826.00 Cr., marking a decrease of 2,605.00 Cr..
For Other Liabilities, as of Dec 2024, the value is ₹3,688.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 2,819.00 Cr. (Dec 2023) to ₹3,688.00 Cr., marking an increase of 869.00 Cr..
For Total Liabilities, as of Dec 2024, the value is ₹23,124.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 15,187.00 Cr. (Dec 2023) to ₹23,124.00 Cr., marking an increase of 7,937.00 Cr..
For Fixed Assets, as of Dec 2024, the value is ₹13,402.00 Cr.. The value appears strong and on an upward trend. It has increased from 8,409.00 Cr. (Dec 2023) to ₹13,402.00 Cr., marking an increase of 4,993.00 Cr..
For CWIP, as of Dec 2024, the value is ₹1,167.00 Cr.. The value appears to be declining and may need further review. It has decreased from 1,922.00 Cr. (Dec 2023) to ₹1,167.00 Cr., marking a decrease of 755.00 Cr..
For Investments, as of Dec 2024, the value is ₹60.00 Cr.. The value appears strong and on an upward trend. It has increased from 21.00 Cr. (Dec 2023) to ₹60.00 Cr., marking an increase of 39.00 Cr..
For Other Assets, as of Dec 2024, the value is ₹8,496.00 Cr.. The value appears strong and on an upward trend. It has increased from 4,835.00 Cr. (Dec 2023) to ₹8,496.00 Cr., marking an increase of 3,661.00 Cr..
For Total Assets, as of Dec 2024, the value is ₹23,124.00 Cr.. The value appears strong and on an upward trend. It has increased from 15,187.00 Cr. (Dec 2023) to ₹23,124.00 Cr., marking an increase of 7,937.00 Cr..

Notably, the Reserves (15,934.00 Cr.) exceed the Borrowings (2,826.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

Month	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operating Activity +	297	431	555	826	620	1,000	1,308	1,012	1,231	1,790	2,391	3,381
Cash from Investing Activity +	-574	-500	-300	-1,048	-746	-937	-2,320	-472	-1,008	-1,769	-3,288	-4,311
Cash from Financing Activity +	274	58	-236	230	159	-84	1,107	-574	-178	-18	985	2,954
Net Cash Flow	-2	-11	19	8	32	-22	95	-33	46	4	88	2,024

Free Cash Flow

Month	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Free Cash Flow	289.00	385.00	640.00	808.00	836.00	-1.00	-2.00	-2.00	-2.00	-1.00	-2.00	2.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023
Debtor Days	18	11	14	11	12	14	9	9	14	9	8	8
Inventory Days	82	75	77	90	103	88	94	100	123	131	116	106
Days Payable	32	42	48	39	58	38	52	54	68	64	48	37
Cash Conversion Cycle	68	44	43	62	58	64	52	55	69	76	76	77
Working Capital Days	46	28	-24	-46	-50	-33	-23	-13	-6	30	32	38
ROCE %		5%	7%	12%	16%	12%	15%	18%	11%	17%	27%	29%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	64.89%	64.89%	64.89%	63.90%	63.90%	63.90%	63.90%	63.61%	63.09%	63.09%	62.91%	62.67%
FIIs	21.72%	21.23%	21.03%	23.93%	25.01%	26.45%	26.00%	26.71%	27.55%	26.58%	25.79%	25.32%
DIIs	6.77%	7.06%	7.21%	5.31%	4.45%	3.42%	3.67%	3.16%	3.36%	3.58%	4.16%	4.54%
Public	6.62%	6.82%	6.87%	6.86%	6.62%	6.20%	6.41%	6.52%	6.01%	6.74%	7.16%	7.46%
No. of Shareholders	1,15,450	1,37,939	1,37,208	1,73,935	2,35,804	2,44,975	2,61,286	3,53,742	3,75,534	4,40,278	4,89,887	5,09,607

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Nippon India Growth Fund	3,800,000	2.01	619.21	1,098,228	2025-04-03	246.01%
Tata Large & Mid Cap Fund - Regular Plan	2,714,500	5.55	442.33	1,098,228	2025-04-03	147.17%
Tata Large & Mid Cap Fund - Regular Plan	2,714,500	5.55	442.33	1,098,228	2025-04-03	147.17%
Axis Flexi Cap Fund	1,576,020	2.02	256.81	1,098,228	2025-04-03	43.51%
PGIM India Flexi Cap Fund	1,409,079	3.64	229.61	1,098,228	2025-04-03	28.3%
Nippon India Flexi Cap Fund	1,223,474	2.56	199.37	1,098,228	2025-04-03	11.4%
PGIM India Midcap Opportunities Fund	1,098,228	1.62	178.96	1,098,228	2025-04-03	0%
HSBC Value Fund	891,700	1.09	145.3	1,098,228	2025-04-03	-18.81%
Invesco India Focused Fund	861,019	4.97	140.3	1,098,228	2025-04-03	-21.6%
Axis ELSS Tax Saver Fund	708,391	0.31	115.43	1,098,228	2025-04-03	-35.5%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Dec 23	Dec 22	Dec 21	Dec 20	Dec 19
FaceValue	5.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	15.83	23.05	16.03	11.40	16.83
Diluted EPS (Rs.)	15.82	23.05	16.03	11.40	16.83
Cash EPS (Rs.)	21.42	33.37	29.50	32.99	33.13
Book Value[Excl.RevalReserv]/Share (Rs.)	54.53	80.29	96.91	124.31	116.36
Book Value[Incl.RevalReserv]/Share (Rs.)	54.53	80.29	96.91	124.31	116.36
Revenue From Operations / Share (Rs.)	123.48	202.80	203.75	223.43	246.96
PBDIT / Share (Rs.)	28.39	43.52	39.78	42.91	51.62
PBIT / Share (Rs.)	23.15	34.02	27.51	24.60	34.69
PBT / Share (Rs.)	21.09	31.15	23.25	14.86	23.97
Net Profit / Share (Rs.)	16.18	23.86	17.23	14.68	16.20
NP After MI And SOA / Share (Rs.)	15.82	23.05	16.03	11.40	16.24
PBDIT Margin (%)	22.99	21.45	19.52	19.20	20.90
PBIT Margin (%)	18.74	16.77	13.50	11.00	14.04
PBT Margin (%)	17.07	15.36	11.40	6.65	9.70
Net Profit Margin (%)	13.10	11.76	8.45	6.57	6.56
NP After MI And SOA Margin (%)	12.81	11.36	7.86	5.10	6.57
Return on Networth / Equity (%)	29.64	29.34	17.01	9.33	14.09
Return on Capital Employeed (%)	27.26	28.88	18.15	11.78	16.23
Return On Assets (%)	13.53	12.88	7.24	3.88	5.59
Long Term Debt / Equity (X)	0.45	0.33	0.44	0.56	0.70
Total Debt / Equity (X)	0.74	0.72	0.59	0.76	0.84
Asset Turnover Ratio (%)	1.20	1.24	0.75	0.58	0.77
Current Ratio (X)	1.02	0.85	0.84	0.73	0.75
Quick Ratio (X)	0.50	0.35	0.36	0.35	0.35
Inventory Turnover Ratio (X)	3.39	3.73	3.09	2.73	3.75
Dividend Payout Ratio (NP) (%)	11.05	10.84	15.59	21.93	14.71
Dividend Payout Ratio (CP) (%)	8.30	7.67	8.83	8.41	7.20
Earning Retention Ratio (%)	88.95	89.16	84.41	78.07	85.29
Cash Earning Retention Ratio (%)	91.70	92.33	91.17	91.59	92.80
Interest Coverage Ratio (X)	13.76	15.19	9.33	4.41	4.81
Interest Coverage Ratio (Post Tax) (X)	8.84	9.33	5.04	2.51	2.51
Enterprise Value (Cr.)	165536.99	89425.64	40612.53	28996.25	23119.87
EV / Net Operating Revenue (X)	10.32	6.79	4.60	4.50	3.24
EV / EBITDA (X)	44.88	31.63	23.58	23.41	15.51
MarketCap / Net Operating Revenue (X)	10.01	6.52	4.35	4.10	2.87
Retention Ratios (%)	88.94	89.15	84.40	78.06	85.28
Price / BV (X)	23.16	16.84	9.41	7.50	6.14
Price / Net Operating Revenue (X)	10.01	6.52	4.35	4.10	2.87
EarningsYield	0.01	0.01	0.01	0.01	0.02

After reviewing the key financial ratios for Varun Beverages Ltd, here is a detailed analysis based on the latest available data and recent trends:

For FaceValue, as of Dec 23, the value is 5.00. This value is within the healthy range. It has decreased from 10.00 (Dec 22) to 5.00, marking a decrease of 5.00.
For Basic EPS (Rs.), as of Dec 23, the value is 15.83. This value is within the healthy range. It has decreased from 23.05 (Dec 22) to 15.83, marking a decrease of 7.22.
For Diluted EPS (Rs.), as of Dec 23, the value is 15.82. This value is within the healthy range. It has decreased from 23.05 (Dec 22) to 15.82, marking a decrease of 7.23.
For Cash EPS (Rs.), as of Dec 23, the value is 21.42. This value is within the healthy range. It has decreased from 33.37 (Dec 22) to 21.42, marking a decrease of 11.95.
For Book Value[Excl.RevalReserv]/Share (Rs.), as of Dec 23, the value is 54.53. It has decreased from 80.29 (Dec 22) to 54.53, marking a decrease of 25.76.
For Book Value[Incl.RevalReserv]/Share (Rs.), as of Dec 23, the value is 54.53. It has decreased from 80.29 (Dec 22) to 54.53, marking a decrease of 25.76.
For Revenue From Operations / Share (Rs.), as of Dec 23, the value is 123.48. It has decreased from 202.80 (Dec 22) to 123.48, marking a decrease of 79.32.
For PBDIT / Share (Rs.), as of Dec 23, the value is 28.39. This value is within the healthy range. It has decreased from 43.52 (Dec 22) to 28.39, marking a decrease of 15.13.
For PBIT / Share (Rs.), as of Dec 23, the value is 23.15. This value is within the healthy range. It has decreased from 34.02 (Dec 22) to 23.15, marking a decrease of 10.87.
For PBT / Share (Rs.), as of Dec 23, the value is 21.09. This value is within the healthy range. It has decreased from 31.15 (Dec 22) to 21.09, marking a decrease of 10.06.
For Net Profit / Share (Rs.), as of Dec 23, the value is 16.18. This value is within the healthy range. It has decreased from 23.86 (Dec 22) to 16.18, marking a decrease of 7.68.
For NP After MI And SOA / Share (Rs.), as of Dec 23, the value is 15.82. This value is within the healthy range. It has decreased from 23.05 (Dec 22) to 15.82, marking a decrease of 7.23.
For PBDIT Margin (%), as of Dec 23, the value is 22.99. This value is within the healthy range. It has increased from 21.45 (Dec 22) to 22.99, marking an increase of 1.54.
For PBIT Margin (%), as of Dec 23, the value is 18.74. This value is within the healthy range. It has increased from 16.77 (Dec 22) to 18.74, marking an increase of 1.97.
For PBT Margin (%), as of Dec 23, the value is 17.07. This value is within the healthy range. It has increased from 15.36 (Dec 22) to 17.07, marking an increase of 1.71.
For Net Profit Margin (%), as of Dec 23, the value is 13.10. This value exceeds the healthy maximum of 10. It has increased from 11.76 (Dec 22) to 13.10, marking an increase of 1.34.
For NP After MI And SOA Margin (%), as of Dec 23, the value is 12.81. This value is within the healthy range. It has increased from 11.36 (Dec 22) to 12.81, marking an increase of 1.45.
For Return on Networth / Equity (%), as of Dec 23, the value is 29.64. This value is within the healthy range. It has increased from 29.34 (Dec 22) to 29.64, marking an increase of 0.30.
For Return on Capital Employeed (%), as of Dec 23, the value is 27.26. This value is within the healthy range. It has decreased from 28.88 (Dec 22) to 27.26, marking a decrease of 1.62.
For Return On Assets (%), as of Dec 23, the value is 13.53. This value is within the healthy range. It has increased from 12.88 (Dec 22) to 13.53, marking an increase of 0.65.
For Long Term Debt / Equity (X), as of Dec 23, the value is 0.45. This value is within the healthy range. It has increased from 0.33 (Dec 22) to 0.45, marking an increase of 0.12.
For Total Debt / Equity (X), as of Dec 23, the value is 0.74. This value is within the healthy range. It has increased from 0.72 (Dec 22) to 0.74, marking an increase of 0.02.
For Asset Turnover Ratio (%), as of Dec 23, the value is 1.20. It has decreased from 1.24 (Dec 22) to 1.20, marking a decrease of 0.04.
For Current Ratio (X), as of Dec 23, the value is 1.02. This value is below the healthy minimum of 1.5. It has increased from 0.85 (Dec 22) to 1.02, marking an increase of 0.17.
For Quick Ratio (X), as of Dec 23, the value is 0.50. This value is below the healthy minimum of 1. It has increased from 0.35 (Dec 22) to 0.50, marking an increase of 0.15.
For Inventory Turnover Ratio (X), as of Dec 23, the value is 3.39. This value is below the healthy minimum of 4. It has decreased from 3.73 (Dec 22) to 3.39, marking a decrease of 0.34.
For Dividend Payout Ratio (NP) (%), as of Dec 23, the value is 11.05. This value is below the healthy minimum of 20. It has increased from 10.84 (Dec 22) to 11.05, marking an increase of 0.21.
For Dividend Payout Ratio (CP) (%), as of Dec 23, the value is 8.30. This value is below the healthy minimum of 20. It has increased from 7.67 (Dec 22) to 8.30, marking an increase of 0.63.
For Earning Retention Ratio (%), as of Dec 23, the value is 88.95. This value exceeds the healthy maximum of 70. It has decreased from 89.16 (Dec 22) to 88.95, marking a decrease of 0.21.
For Cash Earning Retention Ratio (%), as of Dec 23, the value is 91.70. This value exceeds the healthy maximum of 70. It has decreased from 92.33 (Dec 22) to 91.70, marking a decrease of 0.63.
For Interest Coverage Ratio (X), as of Dec 23, the value is 13.76. This value is within the healthy range. It has decreased from 15.19 (Dec 22) to 13.76, marking a decrease of 1.43.
For Interest Coverage Ratio (Post Tax) (X), as of Dec 23, the value is 8.84. This value is within the healthy range. It has decreased from 9.33 (Dec 22) to 8.84, marking a decrease of 0.49.
For Enterprise Value (Cr.), as of Dec 23, the value is 165,536.99. It has increased from 89,425.64 (Dec 22) to 165,536.99, marking an increase of 76,111.35.
For EV / Net Operating Revenue (X), as of Dec 23, the value is 10.32. This value exceeds the healthy maximum of 3. It has increased from 6.79 (Dec 22) to 10.32, marking an increase of 3.53.
For EV / EBITDA (X), as of Dec 23, the value is 44.88. This value exceeds the healthy maximum of 15. It has increased from 31.63 (Dec 22) to 44.88, marking an increase of 13.25.
For MarketCap / Net Operating Revenue (X), as of Dec 23, the value is 10.01. This value exceeds the healthy maximum of 3. It has increased from 6.52 (Dec 22) to 10.01, marking an increase of 3.49.
For Retention Ratios (%), as of Dec 23, the value is 88.94. This value exceeds the healthy maximum of 70. It has decreased from 89.15 (Dec 22) to 88.94, marking a decrease of 0.21.
For Price / BV (X), as of Dec 23, the value is 23.16. This value exceeds the healthy maximum of 3. It has increased from 16.84 (Dec 22) to 23.16, marking an increase of 6.32.
For Price / Net Operating Revenue (X), as of Dec 23, the value is 10.01. This value exceeds the healthy maximum of 3. It has increased from 6.52 (Dec 22) to 10.01, marking an increase of 3.49.
For EarningsYield, as of Dec 23, the value is 0.01. This value is below the healthy minimum of 5. There is no change compared to the previous period (Dec 22) which recorded 0.01.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Varun Beverages Ltd as of April 4, 2025 is: 603.84

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of April 4, 2025, Varun Beverages Ltd is Undervalued by 13.08% compared to the current share price 534.00

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of -1.75, which is a positive sign. The company has higher reserves (3,474.33 cr) compared to borrowings (3,109.33 cr), indicating strong financial stability. The company has shown consistent growth in sales (7.42 cr) and profit (168.33 cr) over the years.	The stock has a low average ROCE of 14.08%, which may not be favorable. The stock has a high average Cash Conversion Cycle of 62.00, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Varun Beverages Ltd:
1. Net Profit Margin: 13.1%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 27.26% (Industry Average ROCE: 24.8%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 29.64% (Industry Average ROE: 22.5%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 8.84
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 0.5
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 68.2 (Industry average Stock P/E: 68.2)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.74
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Varun Beverages Ltd. is a Public Limited Listed company incorporated on 16/06/1995 and has its registered office in the State of Delhi, India. Company's Corporate Identification Number(CIN) is L74899DL1995PLC069839 and registration number is 069839. Currently Company is involved in the business activities of Manufacture of soft drinks; production of mineral waters and other bottled waters. Company's Total Operating Revenue is Rs. 14348.60 Cr. and Equity Capital is Rs. 676.30 Cr. for the Year ended 31/12/2024.

INDUSTRY	ADDRESS	CONTACT
Non-Alcoholic Beverages	F- 2/7, Okhla Industrial Area, New Delhi Delhi 110020	complianceofficer@rjcorp.in http://www.varunbeverages.com

Management
Name	Position Held
Mr. Ravi Kant Jaipuria	Non Executive Chairman
Mr. Varun Jaipuria	Exe.Vice Chairman & Whole Time Director
Mr. Raj Pal Gandhi	Executive & Wholetime Director
Mr. Rajinder Jeet Singh Bagga	Executive & Wholetime Director
Ms. Sita Khosla	Ind. Non-Executive Director
Dr. Ravi Gupta	Ind. Non-Executive Director
Ms. Rashmi Dhariwal	Ind. Non-Executive Director
Mr. Abhiram Seth	Ind. Non-Executive Director
Mr. Anil Kumar Sondhi	Ind. Non-Executive Director
Dr. Naresh Trehan	Non Exe.Non Ind.Director

FAQ

What is the intrinsic value of Varun Beverages Ltd?

Varun Beverages Ltd's intrinsic value (as of 04 April 2025) is ₹603.84 — 13.08% higher the current market price of ₹534.00, indicating undervalued. Calculated using the PE ratio method, this valuation considers the company's 1,80,727 Cr. market cap, FY2025-2026 high/low of ₹683/419, reserves of 15,934 Cr, and liabilities of 23,124 Cr.

What is the Market Cap of Varun Beverages Ltd?

The Market Cap of Varun Beverages Ltd is 1,80,727 Cr..

What is the current Stock Price of Varun Beverages Ltd as on 04 April 2025?

The current stock price of Varun Beverages Ltd as on 04 April 2025 is 534.

What is the High / Low of Varun Beverages Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of Varun Beverages Ltd stocks is ₹683/419.

What is the Stock P/E of Varun Beverages Ltd?

The Stock P/E of Varun Beverages Ltd is 68.2.

What is the Book Value of Varun Beverages Ltd?

The Book Value of Varun Beverages Ltd is 49.1.

What is the Dividend Yield of Varun Beverages Ltd?

The Dividend Yield of Varun Beverages Ltd is 0.18 %.

What is the ROCE of Varun Beverages Ltd?

The ROCE of Varun Beverages Ltd is 24.8 %.

What is the ROE of Varun Beverages Ltd?

The ROE of Varun Beverages Ltd is 22.5 %.

What is the Face Value of Varun Beverages Ltd?

The Face Value of Varun Beverages Ltd is 2.00.