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 determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.
Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements.
Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Varun Beverages.
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PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. 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 62.7397442727757 which is high and comparatively overvalued.
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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 13.8556% which is a bad sign for future performance. (Higher values are always desirable.)
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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 2.4562.
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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 19.6581%. (Higher is better)
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Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Varun Beverages has a Debt to Equity ratio of 0.0503 which means that the company has low proportion of debt in its capital.
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Sales growth: Varun Beverages has reported revenue growth of 13.5819% which is poor in relation to its growth and performance.
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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 25.6994410604519%.
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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 1 and the yield is 0.2123%.
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Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Varun Beverages is Rs 7.508. The higher the EPS, the better it is for investors.
One can find all the Financial Ratios of Varun Beverages in Ticker for free. Also, one can get the intrinsic value of Varun Beverages by using Valuation Calculators, which are available with a Finology ONE subscription.
Varun Beverages FAQs
Q1. What is Varun Beverages share price today?
Ans: The current share price of Varun Beverages is Rs 471.05.
Q2. What is the market capitalisation of Varun Beverages?
Ans: Varun Beverages has a market capitalisation of Rs 159307.285576245 Cr., calculated based on its latest share price.
Q3. What are the P/E and P/B ratios of Varun Beverages?
Ans: The PE ratio of Varun Beverages is 62.7397442727757 and the P/B ratio of Varun Beverages is 8.81828767405377, showing how the stock is valued against its earnings and book value.
Q4. What is the 52-week high and low of Varun Beverages share?
Ans: The 52-week high share price of Varun Beverages is Rs 663.6, and the 52-week low share price of Varun Beverages is Rs 419.55.
Q5. Does Varun Beverages pay dividends?
Ans: Currently, Varun Beverages pays dividends. Dividend yield of Varun Beverages is around 0.2123%.
Q6. What are the face value and book value of Varun Beverages shares?
Ans: The face value of Varun Beverages shares is Rs 2, while the book value per share of Varun Beverages is around Rs 53.4174. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.
Q7. What is the debt of Varun Beverages?
Ans: Varun Beverages has a total debt of Rs 831.541 Cr., which affects investor sentiment and financial stability.
Q8. What are the ROE and ROCE of Varun Beverages?
Ans: The ROE of Varun Beverages is 19.6581% and ROCE of Varun Beverages is 23.4279%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.
Q9. Is Varun Beverages a good buy for the long term?
Ans: The Varun Beverages long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.
Q10. Is Varun Beverages undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Varun Beverages appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.
Q11. How to check Varun Beverages’s financials?
Ans: You can review Varun Beverages’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.