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Last Updated on: 27 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 540180 | NSE: VBL

Varun Beverages Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 26, 2024, 10:47 pm

Market Cap 2,11,057 Cr.
Current Price 624
High / Low 683/478
Stock P/E83.0
Book Value 26.4
Dividend Yield0.16 %
ROCE28.8 %
ROE35.2 %
Face Value 2.00
PEG Ratio1.69

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

View Share Price Target for Varun Beverages Ltd

Competitors of Varun Beverages Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Varun Beverages Ltd 2,11,057 Cr. 624 683/47883.0 26.40.16 %28.8 %35.2 % 2.00
Industry Average211,057.00 Cr624.0083.0026.400.16%28.80%35.20%2.00

All Competitor Stocks of Varun Beverages Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales2,4502,3981,7342,8274,9553,1772,2143,8935,6113,8712,6684,3177,197
Expenses1,8791,9041,5272,2963,7042,4781,9073,0954,1012,9892,2493,3295,206
Operating Profit5714952085311,2516993077981,5118824189891,991
OPM %23%21%12%19%25%22%14%20%27%23%16%23%28%
Other Income243719101191042199844
Interest474337474645476369627494129
Depreciation129138129131153153180172172171166188242
Profit before tax420350423611,062511905731,3116671887161,663
Tax %24%26%22%25%24%23%9%24%23%23%24%23%24%
Net Profit31925833271802395824391,0055141445481,262
EPS in Rs2.371.850.131.966.062.930.583.307.653.861.024.139.64

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023TTM
Sales1,8002,1152,5023,3943,8614,0045,1057,1306,4508,82313,17316,04318,052
Expenses1,5721,8242,1162,7523,0523,1654,0695,6675,2357,12910,31012,32613,773
Operating Profit2282913876428108381,0361,4621,2151,6942,8633,7174,279
OPM %13%14%15%19%21%21%20%21%19%19%22%23%24%
Other Income441914362714647-3051-18-580
Interest116171187170435215223324294207204292359
Depreciation136184210317322347385489529531617681767
Profit before tax21-464191792914346963631,0072,0242,7393,234
Tax %-20%-11%658%41%39%26%31%32%1%26%23%23%
Net Profit25-40-20113482143004723577461,5502,1022,468
EPS in Rs4.65-0.44-0.221.250.341.702.383.612.535.3411.5315.8218.65
Dividend Payout %0%0%0%0%0%22%16%15%22%16%15%16%

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:22%
5 Years:26%
3 Years:35%
TTM:22%
Compounded Profit Growth
10 Years:49%
5 Years:47%
3 Years:77%
TTM:27%
Stock Price CAGR
10 Years:%
5 Years:59%
3 Years:75%
1 Year:26%
Return on Equity
10 Years:23%
5 Years:25%
3 Years:30%
Last Year:35%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Jun 2024
Equity Capital8134134134182183183289289433650650650
Reserves145829911,5111,5871,8163,0403,2353,6474,4536,2877,928
Borrowings1,9402,3322,6152,5272,2152,6542,8083,4173,2163,3873,8845,4316,761
Other Liabilities4604395331,6809158521,1921,6301,7072,1132,6322,8194,041
Total Liabilities2,5532,9863,2924,4314,8245,2765,9988,3768,4479,57911,61815,18719,380
Fixed Assets1,7132,3752,3553,4963,7163,9814,3876,4796,4096,3116,9328,40912,270
CWIP1892725389614535264674976071,922942
Investments013043781100002144
Other Assets6515836088941,0061,1411,2471,8331,9722,7724,0794,8356,124
Total Assets2,5532,9863,2924,4314,8245,2765,9988,3768,4479,57911,61815,18719,380

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Cash from Operating Activity +2802974315558266201,0001,3081,0121,2311,7902,391
Cash from Investing Activity +-507-574-500-300-1,048-746-937-2,320-472-1,008-1,769-3,288
Cash from Financing Activity +22927458-236230159-841,107-574-178-18985
Net Cash Flow3-2-1119832-2295-3346488

Free Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Free Cash Flow227.00289.00385.00640.00808.00836.00-1.00-2.00-2.00-2.00-1.00-2.00

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

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Debtor Days1811141112149914988
Inventory Days827577901038894100123131116106
Days Payable324248395838525468644837
Cash Conversion Cycle684443625864525569767677
Working Capital Days4628-24-46-50-33-23-13-6303238
ROCE %5%7%12%16%12%15%18%11%17%27%29%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters64.89%64.89%64.89%63.90%63.90%63.90%63.90%63.61%63.09%63.09%62.91%62.67%
FIIs21.72%21.23%21.03%23.93%25.01%26.45%26.00%26.71%27.55%26.58%25.79%25.32%
DIIs6.77%7.06%7.21%5.31%4.45%3.42%3.67%3.16%3.36%3.58%4.16%4.54%
Public6.62%6.82%6.87%6.86%6.62%6.20%6.41%6.52%6.01%6.74%7.16%7.46%
No. of Shareholders1,15,4501,37,9391,37,2081,73,9352,35,8042,44,9752,61,2863,53,7423,75,5344,40,2784,89,8875,09,607

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Growth Fund3,800,0002.01619.21708,3912024-12-25436.43%
Tata Large & Mid Cap Fund - Regular Plan2,714,5005.55442.33708,3912024-12-25283.19%
Tata Large & Mid Cap Fund - Regular Plan2,714,5005.55442.33708,3912024-12-25283.19%
Axis Flexi Cap Fund1,576,0202.02256.81708,3912024-12-25122.48%
PGIM India Flexi Cap Fund1,409,0793.64229.61708,3912024-12-2598.91%
Nippon India Flexi Cap Fund1,223,4742.56199.37708,3912024-12-2572.71%
PGIM India Midcap Opportunities Fund1,098,2281.62178.96708,3912024-12-2555.03%
HSBC Value Fund891,7001.09145.3708,3912024-12-2525.88%
Invesco India Focused Fund861,0194.97140.3708,3912024-12-2521.55%
Axis ELSS Tax Saver Fund708,3910.31115.43708,3912024-12-250%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthDec 23Dec 22Dec 21Dec 20Dec 19
FaceValue5.0010.0010.0010.0010.00
Basic EPS (Rs.)15.8323.0516.0311.4016.83
Diluted EPS (Rs.)15.8223.0516.0311.4016.83
Cash EPS (Rs.)21.4233.3729.5032.9933.13
Book Value[Excl.RevalReserv]/Share (Rs.)54.5380.2996.91124.31116.36
Book Value[Incl.RevalReserv]/Share (Rs.)54.5380.2996.91124.31116.36
Revenue From Operations / Share (Rs.)123.48202.80203.75223.43246.96
PBDIT / Share (Rs.)28.3943.5239.7842.9151.62
PBIT / Share (Rs.)23.1534.0227.5124.6034.69
PBT / Share (Rs.)21.0931.1523.2514.8623.97
Net Profit / Share (Rs.)16.1823.8617.2314.6816.20
NP After MI And SOA / Share (Rs.)15.8223.0516.0311.4016.24
PBDIT Margin (%)22.9921.4519.5219.2020.90
PBIT Margin (%)18.7416.7713.5011.0014.04
PBT Margin (%)17.0715.3611.406.659.70
Net Profit Margin (%)13.1011.768.456.576.56
NP After MI And SOA Margin (%)12.8111.367.865.106.57
Return on Networth / Equity (%)29.6429.3417.019.3314.09
Return on Capital Employeed (%)27.2628.8818.1511.7816.23
Return On Assets (%)13.5312.887.243.885.59
Long Term Debt / Equity (X)0.450.330.440.560.70
Total Debt / Equity (X)0.740.720.590.760.84
Asset Turnover Ratio (%)1.201.240.750.580.77
Current Ratio (X)1.020.850.840.730.75
Quick Ratio (X)0.500.350.360.350.35
Inventory Turnover Ratio (X)3.393.733.092.733.75
Dividend Payout Ratio (NP) (%)11.0510.8415.5921.9314.71
Dividend Payout Ratio (CP) (%)8.307.678.838.417.20
Earning Retention Ratio (%)88.9589.1684.4178.0785.29
Cash Earning Retention Ratio (%)91.7092.3391.1791.5992.80
Interest Coverage Ratio (X)13.7615.199.334.414.81
Interest Coverage Ratio (Post Tax) (X)8.849.335.042.512.51
Enterprise Value (Cr.)165536.9989425.6440612.5328996.2523119.87
EV / Net Operating Revenue (X)10.326.794.604.503.24
EV / EBITDA (X)44.8831.6323.5823.4115.51
MarketCap / Net Operating Revenue (X)10.016.524.354.102.87
Retention Ratios (%)88.9489.1584.4078.0685.28
Price / BV (X)23.1616.849.417.506.14
Price / Net Operating Revenue (X)10.016.524.354.102.87
EarningsYield0.010.010.010.010.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Varun Beverages Ltd as of December 27, 2024 is: 772.54

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 December 27, 2024, Varun Beverages Ltd is Undervalued by 23.80% compared to the current share price 624.00

Intrinsic Value of Varun Beverages Ltd as of December 27, 2024 is: 1,151.95

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • 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.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 27, 2024, Varun Beverages Ltd is Undervalued by 84.61% compared to the current share price 624.00

Last 5 Year EPS CAGR: 49.11%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -1.75, which is a positive sign.
  2. The company has shown consistent growth in sales (6.77 cr) and profit (157.00 cr) over the years.
  1. The stock has a low average ROCE of 14.08%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 62.00, which may not be favorable.
  3. The company has higher borrowings (3,322.08) compared to reserves (2,602.38), which may suggest financial risk.

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: 28.8%)
      • 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: 35.2%)
      • 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: 83 (Industry average Stock P/E: 83)
      • 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. 6595.74 Cr. and Equity Capital is Rs. 433.03 Cr. for the Year ended 31/12/2021.
INDUSTRYADDRESSCONTACT
Non-Alcoholic BeveragesF- 2/7, Okhla Industrial Area, New Delhi Delhi 110020complianceofficer@rjcorp.in
http://www.varunbeverages.com
Management
NamePosition Held
Mr. Ravi Kant JaipuriaNon Executive Chairman
Mr. Varun JaipuriaExe.Vice Chairman & Whole Time Director
Mr. Raj Pal GandhiExecutive & Wholetime Director
Mr. Rajinder Jeet Singh BaggaExecutive & Wholetime Director
Mr. Abhiram SethInd. Non-Executive Director
Mr. Anil Kumar SondhiInd. Non-Executive Director
Ms. Sita KhoslaInd. Non-Executive Director
Dr. Ravi GuptaInd. Non-Executive Director
Ms. Rashmi DhariwalInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Varun Beverages Ltd?

The latest intrinsic value of Varun Beverages Ltd as on 27 December 2024 is ₹772.54, which is 23.80% higher than the current market price of ₹624.00. The stock has a market capitalization of 2,11,057 Cr. and recorded a high/low of 683/478 during the current fiscal year 2024-2025. As of Jun 2024, the company has reserves of ₹7,928 Cr and total liabilities of ₹19,380 Cr.

What is the Market Cap of Varun Beverages Ltd?

The Market Cap of Varun Beverages Ltd is 2,11,057 Cr..

What is the current Stock Price of Varun Beverages Ltd as on 27 December 2024?

The current stock price of Varun Beverages Ltd as on 27 December 2024 is 624.

What is the High / Low of Varun Beverages Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Varun Beverages Ltd stocks is 683/478.

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

The Stock P/E of Varun Beverages Ltd is 83.0.

What is the Book Value of Varun Beverages Ltd?

The Book Value of Varun Beverages Ltd is 26.4.

What is the Dividend Yield of Varun Beverages Ltd?

The Dividend Yield of Varun Beverages Ltd is 0.16 %.

What is the ROCE of Varun Beverages Ltd?

The ROCE of Varun Beverages Ltd is 28.8 %.

What is the ROE of Varun Beverages Ltd?

The ROE of Varun Beverages Ltd is 35.2 %.

What is the Face Value of Varun Beverages Ltd?

The Face Value of Varun Beverages Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Varun Beverages Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE