Varun Beverages Ltd.

NSE: VBL  SECTOR: Consumer Food

876.6
-17.9 (-2%)

Price Summary

Today's High

₹ 903.45

Today's Low

₹ 866.5

52 Week High

₹ 1065.9

52 Week Low

₹ 485.05

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.
FinancialsVery Stable
The company possesses stable growth history and manageable debt.

Company Essentials

Market Cap

25306.4531952 Cr.

Enterprise Value

28474.8741952 Cr.

No. of Shares

28.868872 Cr.

P/E

112.94

P/B

6.12

Face Value

₹ 10

Div. Yield

0.29%

Book Value (TTM)

₹  143.335

CASH

32.416 Cr.

DEBT

3200.837 Cr.

Promoter Holding

66.4%

EPS (TTM)

₹  7.7616

Sales Growth

45.3977913541135%

ROE

13.8954714648366 %

ROCE

15.0773858801285 %

Profit Growth

7.98742588587921 %

* 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 1w1m3m6m1Yr3Yr5Yr

* Prices are based on daily market changes.

Valuation Chart 1w1m3m6m1Yr3Yr5Yr

* 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.

Sales Growth (in Cr.)

1 Year45.4%
3 Year23.52%
5 Year22.7%

Profit Growth (in Cr.)

1 Year34.96%
3 Year71.13%
5 Year66.17%

ROE%

1 Year13.9%
3 Year12.71%
5 Year18.16%

ROCE %

1 Year15.08%
3 Year13.81%
5 Year14.35%

Debt/Equity

0.827706273174564

Price to Cash Flow

23.77

Interest Cover Ratio

3.25234985600807

CFO/PAT (5 Yr. Avg.)

3.69798425873267

Share Holding Pattern

Promoter Pledging %

Date Promoter % Pledge %
Dec 2020 66.4 0
Sep 2020 66.4 0
Jun 2020 66.4 0
Mar 2020 68.04 0.12
Dec 2019 68.43 0.13
* Figures given above are % of equity capital

 Strengths

  • The company has shown a good profit growth of 71.1327619347406% for the Past 3 years.
  • The company has shown a good revenue growth of 23.5226788796273% for the Past 3 years.
  • The company has an efficient Cash Conversion Cycle of 24.9177411064245 days.
  • The company has a good cash flow management; CFO/PAT stands at 3.69798425873267.
  • The company has a high promoter holding of 66.4%.

 Limitations

  • The company is trading at a high PE of 112.94.
  • The company is trading at a high EV/EBITDA of 30.411.

Quarterly Result (All Figures in Cr.)

PARTICULARS Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020
Net Sales 1338.73 835.61 1313.66 1410.59 1314.56
Total Expenditure 1065.34 796.76 1092.95 1094.48 1055.03
Operating Profit 273.39 38.84 220.72 316.11 259.52
Other Income 11.52 59.11 30.53 10.72 0.78
Interest 82.27 67.43 72.77 68.96 51.53
Depreciation 103.88 109.32 106.89 98.43 104.48
Exceptional Items 0 0 -66.53 0 0
Profit Before Tax 98.76 -78.8 5.07 159.44 104.3
Tax 33.53 -24.56 -71.81 37.49 24.81
Profit After Tax 65.23 -54.24 76.87 121.95 79.49
Adjusted EPS (Rs) 0.23 -0.19 0.27 0.42 0.28

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

PARTICULARS Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019
Net Sales 2864.01 2979.6 3062.59 3862.28 5615.66
Total Expenditure 2289.14 2277.37 2339.7 2999.7 4410.57
Operating Profit 574.87 702.23 722.89 862.57 1205.1
Other Income 46.42 50.92 47.39 91.64 98.01
Interest 139.71 389.49 192.45 195.7 281.61
Depreciation 262.62 249.46 273.64 295.55 387.2
Exceptional Items 0 0 0 0 0
Profit Before Tax 218.96 114.21 304.19 462.96 634.29
Tax 67.31 24.71 68.6 130.6 185.74
Net Profit 151.65 89.5 235.6 332.36 448.55
Adjusted EPS (Rs.) 7.56 3.27 8.6 12.13 15.54

Balance Sheet (All Figures are in Crores.)

Particulars Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019
Equity and Liabilities
Share Capital 583.77 182.31 182.59 182.64 288.69
Total Reserves 276.66 1954.42 2114.21 2406.3 3578.43
Borrowings 1503.06 1123.13 1606.16 1835.91 2291.71
Other N/C liabilities 811.81 186.63 225.6 304.71 437.63
Current liabilities 966.23 1180.54 1204.11 1400.69 1847.27
Total Liabilities 4141.52 4627.04 5332.67 6130.25 8443.72
Assets
Net Block 2916.19 2991.53 3278 3321.82 5401.75
Capital WIP 32.03 68.94 11.97 339.23 58.58
Investments 303.92 500.53 627.19 774.5 907.78
Loans & Advances 329.52 479.48 646.15 745.19 692.21
Other N/C Assets 5.01 2.98 3.77 3.9 4.65
Current Assets 554.86 583.58 765.59 945.61 1378.75
Total Assets 4141.52 4627.04 5332.67 6130.25 8443.72
* Other Non-current Liabilities include Net deferred Liabilities

Cash Flows (All Figures are in Crores.)

PARTICULARS Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019
Profit Before Tax 218.96 114.21 304.19 462.96 634.29
Adjustment 372.15 613.2 442.75 431.88 577.69
Working Capital Changes -44.27 75.25 -198.67 -93.87 -37.14
Tax Paid -36.6 -51 -48.72 -58.93 -110.14
Operating Cash Flow 510.23 751.66 499.56 742.05 1064.69
Investing Cash Flow -360.2 -1108.5 -809.45 -704.45 -2229.34
Financing Cash Flow -134.35 352.78 326.29 -67.08 1195.22
Net Cash Flow 15.68 -4.06 16.4 -29.49 30.58

Corporate Actions

Ratings & Research Reports

Company Presentations

Company News

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 112.940630797774 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 6.15545513448741 % 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 0.746370452814398 .

  • 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 13.8954714648366 % .(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 0.827706273174564 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 10.291620697365 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 45.3977913541135 % which is fair 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 21.459599434724 %.

  • 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 0.2852 %.

Brief about Varun Beverages

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