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Last Updated on: 21 April, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Varun Beverages Ltd

About the Company - Varun Beverages Ltd

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

Varun Beverages Ltd. Share Price Update

Share PriceValue
Today₹1,395.60
Previous Day₹1,397.35

Basic Stock Data of Varun Beverages Ltd

Last Updated: April 10, 2024, 3:20 am

Market Cap 1,88,329 Cr.
Current Price 1,449
High / Low1,562/688
Stock P/E88.9
Book Value 53.4
Dividend Yield0.17 %
ROCE28.8 %
ROE35.2 %
Face Value 5.00

Data Source: screener.in

Competitors of Varun Beverages Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0%0%0

Varun Beverages Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,3312,2412,4502,3981,7342,8274,9553,1772,2143,8935,6113,8712,668
Expenses1,1591,8591,8791,9041,5272,2963,7042,4781,9073,0954,1012,9892,249
Operating Profit1723825714952085311,2516993077981,511882418
OPM %13%17%23%21%12%19%25%22%14%20%27%23%16%
Other Income66243719101191042199
Interest62584743374746454763696274
Depreciation135135129138129131153153180172172171166
Profit before tax-19195420350423611,062511905731,311667188
Tax %62%30%24%26%22%25%24%23%9%24%23%23%24%
Net Profit-713731925833271802395824391,005514144
EPS in Rs-0.150.992.371.850.131.966.062.930.583.307.653.861.02

Last Updated: April 13, 2024, 9:20 pm

Varun Beverages Ltd Quarterly Chart

Varun Beverages Ltd Profit & Loss

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022TTM
Sales1,8002,1152,5023,3943,8614,0045,1057,1306,4508,82313,17315,589
Expenses1,5721,8242,1162,7523,0523,1654,0695,6675,2357,12910,31012,091
Operating Profit2282913876428108381,0361,4621,2151,6942,8633,498
OPM %13%14%15%19%21%21%20%21%19%19%22%22%
Other Income441914362714647-3051-1880
Interest116171187170435215223324294207204242
Depreciation136184210317322347385489529531617695
Profit before tax21-464191792914346963631,0072,0242,641
Tax %-20%11%658%41%39%26%31%32%1%26%23%
Net Profit25-40-20113482143004723577461,5502,040
EPS in Rs4.65-0.44-0.221.250.341.702.383.612.535.3411.5315.39
Dividend Payout %0%0%0%0%0%22%16%15%22%16%15%

Varun Beverages Ltd Profit & Loss Yearly Chart

Unable to calculate Year-wise YoY Net Profit Growth.

Varun Beverages Ltd 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:38%
Stock Price CAGR
10 Years:%
5 Years:63%
3 Years:86%
1 Year:99%
Return on Equity
10 Years:23%
5 Years:25%
3 Years:30%
Last Year:35%

Last Updated: April 10, 2024, 3:20 am

Varun Beverages Ltd Balance Sheet

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Equity Capital8134134134182183183289289433650650
Reserves145829911,5111,5871,8163,0403,2353,6474,4536,287
Preference Capital-0-0200450-0-0-0-0-0-0-0
Borrowings1,9402,3322,4152,0772,2152,6542,8083,4173,2163,3873,8845,431
Other Liabilities4604397332,1309158521,1921,6301,7072,1132,6322,819
Total Liabilities2,5532,9863,2924,4314,8245,2765,9988,3768,4479,57911,61815,187
Fixed Assets1,7132,3752,3553,4963,7163,9814,3876,4796,4096,3116,9328,409
CWIP1892725389614535264674976071,922
Investments0130437811-0-0-0021
Other Assets6515836088941,0061,1411,2471,8331,9722,7724,0794,835
Total Assets2,5532,9863,2924,4314,8245,2765,9988,3768,4479,57911,61815,187

Varun Beverages Ltd Reserves and Borrowings Chart

Varun Beverages Ltd Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Cash from Operating Activity 2802974315558266201,0001,3081,0121,2311,790
Cash from Investing Activity -507-574-500-300-1,048-746-937-2,320-472-1,008-1,769
Cash from Financing Activity 22927458-236230159-841,107-574-178-18
Net Cash Flow3-2-1119832-2295-33464

Varun Beverages Ltd 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%

Varun Beverages Ltd Financial Efficiency Indicators Chart

Varun Beverages Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters66.40%65.82%64.89%64.89%64.89%63.90%63.90%63.90%63.90%63.61%63.09%63.09%
FIIs20.28%20.73%21.72%21.23%21.03%23.93%25.01%26.45%26.00%26.71%27.55%26.58%
DIIs5.90%5.83%6.77%7.06%7.21%5.31%4.45%3.42%3.67%3.16%3.36%3.58%
Public7.42%7.62%6.62%6.82%6.87%6.86%6.62%6.20%6.41%6.52%6.01%6.74%
No. of Shareholders56,2131,08,8751,15,4501,37,9391,37,2081,73,9352,35,8042,44,9752,61,2863,53,7423,75,5344,40,278

Varun Beverages Ltd Shareholding Pattern Chart

No. of Varun Beverages Ltd Shareholders

Varun Beverages Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Growth Fund51000002.43463.49
Tata Large & Mid Cap Fund - Regular Plan29400005.09267.19
Tata Large & Mid Cap Fund - Regular Plan29400005.09267.19
PGIM India Flexi Cap Fund16340792.64148.51
Bandhan Flexi Cap Fund13156442119.57
Nippon India Flexi Cap Fund12234742.3111.19
PGIM India Midcap Opportunities Fund10982281.199.81
Tata Hybrid Equity Fund - Regular Plan10800002.9698.15
Sundaram Large and Mid Cap Fund9000001.5481.79
HSBC Value Fund8917000.8781.04

Varun Beverages Ltd ROCE Trend

Varun Beverages Ltd EPS Trend

Varun Beverages Ltd 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 (%)29.6329.3417.019.3314.09
Return on Capital Employeed (%)27.2628.8818.1511.7816.23
Return On Assets (%)13.5312.887.243.885.59
Long Term Debt / Equity (X)0.480.330.440.560.70
Total Debt / Equity (X)0.780.720.590.760.84
Asset Turnover Ratio (%)1.201.030.750.580.77
Current Ratio (X)1.020.850.840.730.75
Quick Ratio (X)0.500.350.360.350.35
Inventory Turnover Ratio (X)3.393.803.092.733.75
Dividend Payout Ratio (NP) (%)0.0010.8415.5921.9314.71
Dividend Payout Ratio (CP) (%)0.007.678.838.417.20
Earning Retention Ratio (%)0.0089.1684.4178.0785.29
Cash Earning Retention Ratio (%)0.0092.3391.1791.5992.80
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.)165773.9189425.6440612.5328996.2523119.87
EV / Net Operating Revenue (X)10.336.794.604.503.24
EV / EBITDA (X)44.9431.6323.5823.4115.51
MarketCap / Net Operating Revenue (X)10.016.524.354.102.87
Retention Ratios (%)0.0089.1584.4078.0685.28
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

Varun Beverages Ltd Profitability Ratios (%)

Varun Beverages Ltd Liquidity Ratios

Varun Beverages Ltd Liquidity Ratios (%)

Varun Beverages Ltd Interest Coverage Ratios (X)

Varun Beverages Ltd Valuation Ratios

Fair Value / Intrinsic Value of Varun Beverages Ltd

Fair Value: 1673.88

The stock is undervalued by 15.52% compared to the current price ₹1449

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.

*Investments are subject to market risks

Strength and Weakness of Varun Beverages Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -1.75, which is a positive sign.
  2. The company has higher reserves (2,158.58 cr) compared to borrowings (54.17 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (5.83 cr) and profit (169.83 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.

Should I Buy Varun Beverages Ltd Share Now?

  • 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: 13.10%
      • 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: 0%)
      • 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%: 29.63% (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.
    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: 0.50
      • 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: 88.9 (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.
    7. ✓ Total Debt / Equity: 0.78
      • 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: ★★★★︎☆

FAQ

What is the latest fair value of Varun Beverages Ltd?

The latest fair value of Varun Beverages Ltd is 1673.88.

What is the Market Cap of Varun Beverages Ltd?

The Market Cap of Varun Beverages Ltd is 1,88,329 Cr..

What is the current Stock Price of Varun Beverages Ltd as on 19 April 2024?

The current stock price of Varun Beverages Ltd as on 19 April 2024 is 1,449.

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

In FY 2024, the High / Low of Varun Beverages Ltd stocks is ₹1,562/688.

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

The Stock P/E of Varun Beverages Ltd is 88.9.

What is the Book Value of Varun Beverages Ltd?

The Book Value of Varun Beverages Ltd is 53.4.

What is the Dividend Yield of Varun Beverages Ltd?

The Dividend Yield of Varun Beverages Ltd is 0.17 %.

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 5.00.

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