Varun Beverages Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹195,534.5 crore, PE ratio of 95.11, debt-to-equity ratio of 76.66, and return on equity of 33.43%. These figures reflect the company’s financial health and current market valuation.
Content:
- Varun Beverages Overview
- Varun Beverages Financial Results
- Varun Beverages Financial Analysis
- Varun Beverages Company Metrics
- Varun Beverages Stock Performance
- Varun Beverages Peer Comparison
- Varun Beverages Shareholding Pattern
- Varun Beverages History
- How To Invest In Varun Beverages Ltd Share?
- Varun Beverages Limited Fundamental Analysis – FAQs
Varun Beverages Overview
Varun Beverages Ltd is one of the largest franchise of PepsiCo outside the United States. It operates in the beverage industry, producing and distributing a wide range of carbonated soft drinks and non-carbonated beverages.
The company has a market capitalization of ₹195,534.5 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 13.16% below its 52-week high and 87.47% above its 52-week low.
Varun Beverages Financial Results
Varun Beverages Ltd experienced a steady increase in sales over three years, growing from ₹8,823 crore in FY 22 to ₹16,043 crore in FY 24. Operating profit followed, rising from ₹1,655 crore to ₹3,609 crore, reflecting improved operational efficiency.
1. Revenue Trend: Sales grew consistently, with ₹8,823 crore in FY 22, ₹13,173 crore in FY 23, and ₹16,043 crore in FY 24, marking an upward trajectory.
2. Equity and Liabilities: Equity and liabilities for FY 24 showed growth, with total liabilities increasing from ₹11,618 crore in FY 23 to ₹15,187 crore. Equity capital also rose from ₹649.55 crore to ₹649.61 crore.
3. Profitability: Net profit increased significantly from ₹746 crore in FY 22 to ₹2,102 crore in FY 24, showcasing enhanced profitability.
4. Earnings per Share (EPS): EPS saw fluctuations, from ₹16.03 in FY 22, rising to ₹23.05 in FY 23, and adjusting to ₹15.83 in FY 24.
5. Return on Net Worth (RoNW): The detailed RoNW figures are not provided, but the increase in net profit suggests an improvement.
6. Financial Position: The company’s dividend payout ratio has been consistent, around 15%, indicating stable returns to shareholders.
Varun Beverages Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 16,043 | 13,173 | 8,823 |
| Expenses | 12,433 | 10,385 | 7,169 |
| Operating Profit | 3,609 | 2,788 | 1,655 |
| OPM % | 22 | 21 | 19 |
| Other Income | 79 | 39 | 68 |
| EBITDA | 3,689 | 2,827 | 1,723 |
| Interest | 268 | 186 | 185 |
| Depreciation | 681 | 617 | 531 |
| Profit Before Tax | 2,740 | 2,024 | 1,007 |
| Tax % | 23 | 23 | 26 |
| Net Profit | 2,102 | 1,550 | 746 |
| EPS | 15.83 | 23.05 | 16.03 |
| Dividend Payout % | 15.79 | 15.18 | 15.6 |
* Consolidated Figures in Rs. Crores
Varun Beverages Company Metrics
Varun Beverages’ market cap is ₹195,534.5 crore with a book value of ₹66.0 per share. The face value per share is ₹5. Total debt is ₹5,431.31 crore, ROE is 33.43%, and quarterly EBITDA is ₹2,034.71 crore. The dividend yield stands at 0.17%.
Market Capitalization:
Market Capitalization represents the total market value of Varun Beverages’ outstanding shares, amounting to ₹195,534.5 crore.
Book Value:
The book value per share of Varun Beverages is ₹66 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value:
The face value of Varun Beverages’ shares is ₹5, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio:
The Asset Turnover Ratio of 1.2 measures how efficiently Varun Beverages uses its assets to generate sales revenue or sales income.
Total Debt:
The Total Debt of Varun Beverages stands at ₹5,431.31 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE):
The ROE of 33.43% measures Varun Beverages’ profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Q):
The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Varun Beverages is ₹2,034.71 crore, indicating the company’s operating performance.
Dividend Yield:
The dividend yield of 0.17% shows the annual dividend payment as a percentage of Varun Beverages’ current share price, indicating the return on investment from dividends alone.
Varun Beverages Stock Performance
Varun Beverages Ltd demonstrated robust returns with 77.6% over one year, 80.0% over three years, and 60.6% over five years, showcasing impressive growth potential and investor gains.
| Period | Return on Investment (%) |
| 1 Year | 77.6 |
| 3 Years | 80.0 |
| 5 Years | 60.6 |
Example: If an investor had invested ₹1,000 in Varun Beverages’ stock:
1 year ago: An investment of ₹1,000 would now be worth ₹1,776.
3 years ago: That investment would have grown to approximately ₹1,800.
5 years ago: The initial ₹1,000 would have increased to around ₹1,606.
Varun Beverages Peer Comparison
Varun Beverages Ltd stands out with a market capitalization of ₹1,92,305 crore and a 1-year return of 78%, showcasing significant market presence and growth. With a P/E ratio of 95.11 and ROCE of 29%, it demonstrates robust earnings and operational efficiency compared to its peers in the food and beverage sector.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Varun Beverages | 1,480 | 1,92,305 | 95 | 35 | 19 | 78 | 29 | 0.17 |
| Hatsun Agro | 1,224 | 27,272 | 86 | 17 | 14 | 13 | 13 | 0.50 |
| Bikaji Foods | 841 | 21,048 | 73 | 25 | 11 | 67 | 29.6 | 0.12 |
| Zydus Wellness | 2,316 | 14,739 | 48 | 5 | 48 | 50.64 | 5.33 | 0.22 |
| L T Foods | 309 | 10,734 | 18 | 19 | 18 | 77 | 21 | 0.49 |
| Avanti Feeds | 741 | 10,096 | 27 | 15 | 28 | 88 | 20.01 | 0.91 |
| Mrs. Bectors | 1,432 | 8,421 | 60 | 23 | 24 | 30 | 25.34 | 0.10 |
Varun Beverages Shareholding Pattern
Varun Beverages Ltd has seen a slight decline in promoter shareholding from 63% in December 2023 to 62.66% in June 2024. FII participation also decreased from 26.58% to 25.32% during the same period. Conversely, DII and retail holdings have increased, indicating diversified investor interest.
| All values in % | Jun-24 | Mar-24 | Dec-23 |
| Promoters | 62.66 | 62.91 | 63 |
| FII | 25.32 | 25.79 | 26.58 |
| DII | 4.54 | 4.16 | 3.58 |
| Retail & others | 7.46 | 7.16 | 6.74 |
Varun Beverages History
Varun Beverages Limited (VBL) is a key player in the Indian beverage industry, operating as a franchisee of PepsiCo. The company’s primary business involves the production and distribution of a wide range of beverages, including both carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs).
VBL’s product portfolio includes popular PepsiCo brands such as Pepsi, Diet Pepsi, Seven-Up, Mirinda, Mountain Dew, and Sting in the CSD category. In the NCB segment, the company produces and sells brands like Tropicana Slice, Tropicana Juices, and Nimbooz. Additionally, VBL distributes packaged drinking water under the Aquafina brand.
The company has established a strong manufacturing presence both in India and internationally. VBL operates approximately 31 manufacturing plants across India and has six manufacturing facilities in international locations, including Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe. This extensive production network enables VBL to efficiently serve its markets and maintain a competitive edge in the beverage industry.
How To Invest In Varun Beverages Ltd Share?
To invest in Varun Beverages Ltd shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Varun Beverages shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Varun Beverages Limited Fundamental Analysis – FAQs
Fundamental analysis of Varun Beverages Ltd examines key financial metrics: Market Cap (₹195,534.5 crore), PE Ratio (95.11), Debt to Equity (76.66), and Return on Equity (33.43%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the beverage industry.
The market capitalization of Varun Beverages Ltd is ₹195,534.5 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Varun Beverages Limited is one of the largest franchisees of PepsiCo outside the United States. It is engaged in the production, bottling, and distribution of carbonated and non-carbonated beverages. The company operates in India and several international markets.
Varun Beverages is a public limited company. While the promoter group, led by Ravi Kant Jaipuria and family, holds a significant stake, it is a listed company with multiple shareholders including institutional investors and public shareholders.
Determining if Varun Beverages is a good buy depends on various factors including the company’s financial health, growth prospects, industry trends, and individual investment goals. Investors should conduct thorough research and consider consulting a financial advisor before making investment decisions.
The main shareholders of Varun Beverages Ltd typically include the promoter group (Ravi Kant Jaipuria and family) as major stakeholders, along with institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current shareholding information, refer to the latest pattern disclosed by the company.
Varun Beverages operates in the beverage industry, specifically in the production, bottling, and distribution of carbonated and non-carbonated drinks. As a PepsiCo franchisee, it plays a significant role in the soft drink and packaged water segments of the food and beverage sector.
To invest in Varun Beverages shares, open a demat account with Alice Blue, complete KYC, fund your account, research the company, and use the trading platform to place a buy order for the desired number of shares at your preferred price.
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