Stock P/E, Current Price, and Intrinsic Value Over Time
Competitors of Varun Beverages Ltd
Stock Name
Market Cap
Current Price
High / Low
Stock P/E
Book Value
Dividend Yield
ROCE
ROE
Face Value
Industry Average
0 Cr
0
0
0
0%
0%
0%
0
Quarterly Result
Month
Jun 2021
Sep 2021
Dec 2021
Mar 2022
Jun 2022
Sep 2022
Dec 2022
Mar 2023
Jun 2023
Sep 2023
Dec 2023
Mar 2024
Jun 2024
Sales
2,450
2,398
1,734
2,827
4,955
3,177
2,214
3,893
5,611
3,871
2,668
4,317
7,197
Expenses
1,879
1,904
1,527
2,296
3,704
2,478
1,907
3,095
4,101
2,989
2,249
3,329
5,206
Operating Profit
571
495
208
531
1,251
699
307
798
1,511
882
418
989
1,991
OPM %
23%
21%
12%
19%
25%
22%
14%
20%
27%
23%
16%
23%
28%
Other Income
24
37
1
9
10
11
9
10
42
19
9
8
44
Interest
47
43
37
47
46
45
47
63
69
62
74
94
129
Depreciation
129
138
129
131
153
153
180
172
172
171
166
188
242
Profit before tax
420
350
42
361
1,062
511
90
573
1,311
667
188
716
1,663
Tax %
24%
26%
22%
25%
24%
23%
9%
24%
23%
23%
24%
23%
24%
Net Profit
319
258
33
271
802
395
82
439
1,005
514
144
548
1,262
EPS in Rs
2.37
1.85
0.13
1.96
6.06
2.93
0.58
3.30
7.65
3.86
1.02
4.13
9.64
Last Updated: September 7, 2024, 5:19 pm
Quarterly Chart
Profit & Loss - Annual Report
Last Updated: August 9, 2024, 6:20 pm
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
TTM
Sales
1,800
2,115
2,502
3,394
3,861
4,004
5,105
7,130
6,450
8,823
13,173
16,043
18,052
Expenses
1,572
1,824
2,116
2,752
3,052
3,165
4,069
5,667
5,235
7,129
10,310
12,326
13,773
Operating Profit
228
291
387
642
810
838
1,036
1,462
1,215
1,694
2,863
3,717
4,279
OPM %
13%
14%
15%
19%
21%
21%
20%
21%
19%
19%
22%
23%
24%
Other Income
44
19
14
36
27
14
6
47
-30
51
-18
-5
80
Interest
116
171
187
170
435
215
223
324
294
207
204
292
359
Depreciation
136
184
210
317
322
347
385
489
529
531
617
681
767
Profit before tax
21
-46
4
191
79
291
434
696
363
1,007
2,024
2,739
3,234
Tax %
-20%
-11%
658%
41%
39%
26%
31%
32%
1%
26%
23%
23%
Net Profit
25
-40
-20
113
48
214
300
472
357
746
1,550
2,102
2,468
EPS in Rs
4.65
-0.44
-0.22
1.25
0.34
1.70
2.38
3.61
2.53
5.34
11.53
15.82
18.65
Dividend Payout %
0%
0%
0%
0%
0%
22%
16%
15%
22%
16%
15%
16%
Profit & Loss Yearly Chart
Unable to calculate Year-wise YoY Net Profit Growth.
Growth
Compounded Sales Growth
10 Years:
22%
5 Years:
26%
3 Years:
35%
TTM:
21%
Compounded Profit Growth
10 Years:
49%
5 Years:
47%
3 Years:
77%
TTM:
29%
Stock Price CAGR
10 Years:
%
5 Years:
64%
3 Years:
81%
1 Year:
91%
Return on Equity
10 Years:
23%
5 Years:
25%
3 Years:
30%
Last Year:
35%
Last Updated: August 2, 2024, 6:16 pm
Balance Sheet
Last Updated: August 9, 2024, 6:20 pm
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
Jun 2024
Equity Capital
8
134
134
134
182
183
183
289
289
433
650
650
650
Reserves
145
82
9
91
1,511
1,587
1,816
3,040
3,235
3,647
4,453
6,287
7,928
Borrowings
1,940
2,332
2,615
2,527
2,215
2,654
2,808
3,417
3,216
3,387
3,884
5,431
6,761
Other Liabilities
460
439
533
1,680
915
852
1,192
1,630
1,707
2,113
2,632
2,819
4,041
Total Liabilities
2,553
2,986
3,292
4,431
4,824
5,276
5,998
8,376
8,447
9,579
11,618
15,187
19,380
Fixed Assets
1,713
2,375
2,355
3,496
3,716
3,981
4,387
6,479
6,409
6,311
6,932
8,409
12,270
CWIP
189
27
25
38
96
145
352
64
67
497
607
1,922
942
Investments
0
1
304
3
7
8
11
0
0
0
0
21
44
Other Assets
651
583
608
894
1,006
1,141
1,247
1,833
1,972
2,772
4,079
4,835
6,124
Total Assets
2,553
2,986
3,292
4,431
4,824
5,276
5,998
8,376
8,447
9,579
11,618
15,187
19,380
Reserves and Borrowings Chart
Cash Flow
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
Cash from Operating ActivityÂ
280
297
431
555
826
620
1,000
1,308
1,012
1,231
1,790
2,391
Cash from Investing ActivityÂ
-507
-574
-500
-300
-1,048
-746
-937
-2,320
-472
-1,008
-1,769
-3,288
Cash from Financing ActivityÂ
229
274
58
-236
230
159
-84
1,107
-574
-178
-18
985
Net Cash Flow
3
-2
-11
19
8
32
-22
95
-33
46
4
88
Free Cash Flow
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
Free Cash Flow
227.00
289.00
385.00
640.00
808.00
836.00
-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.
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.
Undervalued: 24.85% compared to the current price ₹1,493.00
Intrinsic Value: 2,779.52
Calculation basis:
Fair 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.
Undervalued: 86.17% compared to the current price ₹1,493.00
Last 5 Year EPS CAGR: 49.11%
*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 shown consistent growth in sales (6.77 cr) and profit (157.00 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.
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:
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.
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.
ROE%: 29.64% (Industry Average ROE: 0%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
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.
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.
Stock P/E: 80.1 (Industry average Stock P/E: 0)
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.
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.
INDUSTRY
ADDRESS
CONTACT
Non-Alcoholic Beverages
F- 2/7, Okhla Industrial Area, New Delhi Delhi 110020
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
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