ScoreWhy is Varun Beverages Ltd ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 22.82%
- Healthy long term growth as Net Sales has grown by an annual rate of 27.27% and Operating profit at 44.29%
- Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.88 times
2
Flat results in Sep 25
- ROCE(HY) Lowest at 19.85%
3
With ROE of 15.5, it has a Very Expensive valuation with a 8.8 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -24.30%, its profits have risen by 16.9% ; the PEG ratio of the company is 4.5
4
High Institutional Holdings at 33.72%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.34% over the previous quarter.
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -24.30% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Varun Beverages should be less than 10%
- Overall Portfolio exposure to Beverages should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Varun Beverages for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Varun Beverages
-24.3%
-0.76
31.98%
Sensex
4.83%
0.41
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
27.27%
EBIT Growth (5y)
44.29%
EBIT to Interest (avg)
10.86
Debt to EBITDA (avg)
1.30
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.27
Tax Ratio
23.23%
Dividend Payout Ratio
13.03%
Pledged Shares
0.04%
Institutional Holding
33.72%
ROCE (avg)
21.56%
ROE (avg)
22.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
55
Industry P/E
60
Price to Book Value
8.83
EV to EBIT
42.20
EV to EBITDA
32.50
EV to Capital Employed
8.84
EV to Sales
7.66
PEG Ratio
4.46
Dividend Yield
0.31%
ROCE (Latest)
21.24%
ROE (Latest)
15.51%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
PAT(9M)
Higher at Rs 2,784.70 Cr
DEBT-EQUITY RATIO(HY)
Lowest at 0.12 times
-2What is not working for the Company
ROCE(HY)
Lowest at 19.85%
Loading Valuation Snapshot...
Here's what is working for Varun Beverages
Debt-Equity Ratio - Half Yearly
Lowest at 0.12 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Profit After Tax (PAT) - Nine Monthly
Higher at Rs 2,784.70 Cr
than preceding 12 month period ended Sep 2025 of Rs 2,594.63 crMOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
PAT (Rs Cr)
Here's what is not working for Varun Beverages
Non Operating Income - Quarterly
Highest at Rs 148.03 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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