Varun Beverages Ltd.

NSE: VBL BSE: 540180 SECTOR: Consumer Food

796.45
+5.3 (0.67%)
NSE: 18 Jun 03:58 PM

Price Summary

Today's High

₹ 800

Today's Low

₹ 783.05

52 Week High

₹ 918.4

52 Week Low

₹ 430.9

FinStar

Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationExpensive
The stock is at a premium valuation at this point.
EfficiencyOptimal
The company could improve upon its asset employment.
FinancialsWeak
Watch out! The company might not be able to sustain any adverse condition.

Company Essentials

Market Cap

34488.92 Cr.

Enterprise Value

37503.99 Cr.

No. of Shares

43.3 Cr.

P/E

125.51

P/B

8.06

Face Value

₹ 10

Div. Yield

0.21%

Book Value (TTM)

₹  98.87

CASH

36.48 Cr.

DEBT

3051.54 Cr.

Promoter Holding

66.4%

EPS (TTM)

₹  6.35

Sales Growth

-13.16%

ROE

5.75 %

ROCE

6.41 %

Profit Growth

-49.52 %

* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

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Price Chart 1d 1w 1m 3m 6m 1Yr 3Yr 5Yr

 

Volume Chart 1d 1w 1m 3m 6m 1Yr 3Yr 5Yr

* Prices are based on daily market changes.
* The chart is based on the standalone earnings of the company.

Peer Comparison

View Full Peer Comparison
* The Peers list includes companies operating in the same industry and having comparable market cap.

 Group Companies

Ratios

Sales Growth

1 Year-13.16%
3 Year16.77%
5 Year11.23%

Profit Growth

1 Year-49.52%
3 Year-1.31%
5 Year8.35%

ROE%

1 Year5.75%
3 Year11.08%
5 Year10.18%

ROCE %

1 Year6.41%
3 Year11.8%
5 Year12.81%

Debt/Equity

0.7606

Price to Cash Flow

47.92

Interest Cover Ratio

1.81088542062581

CFO/PAT (5 Yr. Avg.)

2.83679968178441

Share Holding Pattern

Promoter Pledging %

Date Promoter % Pledge %
Mar 2021 66.4 0
Dec 2020 66.4 0
Sep 2020 66.4 0
Jun 2020 66.4 0
Mar 2020 68.04 0.12
* Figures given above are % of equity capital

 Strengths

  • The company has shown a good revenue growth of 16.77169033948% for the Past 3 years.
  • The company has an efficient Cash Conversion Cycle of 26.3781885288214 days.
  • The company has a good cash flow management; CFO/PAT stands at 2.83679968178441.
  • The company has a high promoter holding of 66.4%.

 Limitations

  • The company has shown a poor profit growth of -1.3144688243289% for the Past 3 years.
  • Tax rate is low at -11.7174856917308.
  • The company is trading at a high PE of 125.51.
  • The company is trading at a high EV/EBITDA of 37.3625.

Quarterly Result (All Figures in Cr.)

PARTICULARS Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021
Net Sales 1313.66 1410.59 1314.56 837.64 1799.15
Total Expenditure 1092.95 1094.48 1055.03 774.94 1479.99
Operating Profit 220.72 316.11 259.52 62.7 319.16
Other Income 30.53 10.72 0.78 29.96 6.05
Interest 72.77 68.96 51.53 55.76 44.85
Depreciation 106.89 98.43 104.48 103.02 105.08
Exceptional Items -66.53 0 0 0 0
Profit Before Tax 5.07 159.44 104.3 -66.13 175.28
Tax -71.81 37.49 24.81 -14.24 50.04
Profit After Tax 76.87 121.95 79.49 -51.88 125.24
Adjusted EPS (Rs) 1.78 2.82 1.84 -1.2 2.89

Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)

PARTICULARS Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020
Net Sales 2979.6 3062.59 3862.28 5615.66 4876.45
Total Expenditure 2277.37 2339.7 2999.7 4410.57 4016.47
Operating Profit 702.23 722.89 862.57 1205.1 859.98
Other Income 50.92 47.39 91.64 98.01 71.99
Interest 389.49 192.45 195.7 281.61 249.95
Depreciation 249.46 273.64 295.55 387.2 412.82
Exceptional Items 0 0 0 0 -66.53
Profit Before Tax 114.21 304.19 462.96 634.29 202.68
Tax 24.71 68.6 130.6 185.74 -23.75
Net Profit 89.5 235.6 332.36 448.55 226.43
Adjusted EPS (Rs.) 2.18 5.73 8.09 10.36 5.23

Balance Sheet (All Figures are in Crores.)

Particulars Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020
Equity and Liabilities
Share Capital 182.31 182.59 182.64 288.69 288.69
Total Reserves 1954.42 2114.21 2406.3 3578.43 3723.08
Borrowings 1123.13 1606.16 1835.91 2291.71 1954.35
Other N/C liabilities 186.63 225.6 304.71 437.63 422.84
Current liabilities 1180.54 1204.11 1400.69 1847.27 1933.05
Total Liabilities 4627.04 5332.67 6130.25 8443.72 8322.01
Assets
Net Block 2991.53 3278 3321.82 5401.75 5263.41
Capital WIP 68.94 11.97 339.23 58.58 39.01
Intangible WIP 0 0 0 0 0
Investments 500.53 627.19 774.5 907.78 1352.17
Loans & Advances 479.48 646.15 745.19 692.21 371.98
Other N/C Assets 2.98 3.77 3.9 4.65 3.54
Current Assets 583.58 765.59 945.61 1378.75 1291.91
Total Assets 4627.04 5332.67 6130.25 8443.72 8322.01
* Other Non-current Liabilities include Net deferred Liabilities

Cash Flows (All Figures are in Crores.)

PARTICULARS Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020
Profit from operations 114.21 304.19 462.96 634.29 202.68
Adjustment 613.2 442.75 431.88 579.9 666.59
Changes in Assets & Liabilities 75.25 -198.67 -93.87 -37.14 -101.98
Tax Paid -51 -48.72 -58.93 -110.14 -47.62
Operating Cash Flow 751.66 499.56 742.05 1066.91 719.67
Investing Cash Flow -1108.5 -809.45 -704.45 -2229.34 -227.97
Financing Cash Flow 352.78 326.29 -67.08 1193.01 -487.65
Net Cash Flow -4.06 16.4 -29.49 30.58 4.05

Corporate Actions

Investors Details

PARTICULARS Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021
Promoters 68.04 66.4 66.4 66.4 66.4
RAVI KANT JAIPURIA 0 0 0 18.66 18.66
RJ CORP LIMITED 27.69 27.69 27.69 27.69 27.69
VARUN JAIPURIA 17.55 17.55 17.55 17.55 17.55
VIVEK GUPTA 0.08 0.07 0.07 0.07 0.07
DEVYANI JAIPURIA 2.81 2.43 2.43 2.43 2.43
RAVI KANT JAIPURIA & SONS... 19.91 18.66 18.66 0 0
PARTICULARS Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021
Public 5.84 6.65 6.89 7.28 7.42
Qualified Institutional B... 0.17 0 0.42 0.5 0.52
PARTICULARS Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021
FII/DII 26.12 26.95 26.71 26.32 26.18
SMALLCAP WORLD FUND, INC 3.1 3.2 2.77 0 0
STICHTING DEPOSITARY APG ... 1.69 1.69 1.74 2.19 2.19
SUNDARAM MUTUAL FUND A/C ... 1.85 1.86 0 0 1.25
TATA MUTUAL FUND - TATA H... 0 0 0 0 0
GOVERNMENT PENSION FUND G... 2.01 2.7 2.87 2.87 2.92
NORDEA 1 SICAV - EMERGING... 1.01 0 0 0 1.7
RELIANCE CAPITAL TRUSTEE ... 0 0 2.62 0 0
RELIANCE CAPITAL TRUSTEE ... 2.58 2.69 0 0 0
NORDEA 1 - ASIAN STARS EQ... 0 0 1.06 1.87 0
SUNDARAM MUTUAL FUND A/C ... 0 0 1.58 0 0
NIPPON LIFE INDIA TRUSTEE... 0 0 0 2.51 0
SUNDARAM MUTUAL FUND A/C ... 0 0 0 1.47 0
NIPPON LIFE INDIA TRUSTEE... 0 0 0 0 2.47

Ratings & Research Reports

Company Presentations

Varun Beverages Stock Price Analysis and Quick Research Report. Is Varun Beverages an attractive stock to invest in?

 

Stock investing requires careful analysis of financial data to find out the company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement. This can be time-consuming and cumbersome. An easier way to find out about a company's performance is to look at its financial ratios, which can help to make sense of the overwhelming amount of information that can be found in a company's financial statements.

Here are the few indispensable tools that should be a part of every investor’s research process.

  • PE ratio: - Price to Earnings' ratio, which indicates for every rupee of earnings how much an investor is willing to pay for a share. A general rule of thumb is that shares trading at a LOW P/E are undervalued (it depends on other factors too). Varun Beverages has a PE ratio of 124.734080272302 which is high and comparatively overvalued .

  • Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Varun Beverages has ROA of 2.70109388642043 % which is a bad sign for future performance. (higher values are always desirable)

  • Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Varun Beverages has a Current ratio of 0.668325354594336 .

  • Return on equity: - ROE measures the ability of a firm to generate profits from its shareholders investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Varun Beverages has a ROE of 5.74774295445903 % .(higher is better)

  • Debt to equity ratio: - It is a good metric to check out the capital structure along with its performance. Varun Beverages has a D/E ratio of 0.7606 which means that the company has low proportion of debt in its capital.

  • Inventory turnover ratio: - Inventory Turnover ratio is an activity ratio and is a tool to evaluate the liquidity of a company's inventory. It measures how many times a company has sold and replaced its inventory during a certain period of time. Varun Beverages has an Inventory turnover ratio of 8.64137705577629 which shows that the management is inefficient in relation to its Inventory and working capital management.

  • Sales growth: - Varun Beverages has reported revenue growth of -13.1634121984506 % which is poor in relation to its growth and performance.

  • Operating Margin: - This will tell you about the operational efficiency of the company. The operating margin of Varun Beverages for the current financial year is 17.6354278962303 %.

  • Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Varun Beverages is Rs 2.5 and the yield is 0.2107 %.

Brief about Varun Beverages

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