ScoreWhy is Varun Beverages Ltd ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 21.43%
- Healthy long term growth as Net Sales has grown by an annual rate of 26.47% and Operating profit at 38.62%
- Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.50 times
2
Flat results in Mar 26
- ROCE(HY) Lowest at 18.92%
- DEBTORS TURNOVER RATIO(HY) Lowest at 17.79 times
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 -0.96%, its profits have risen by 14.3% ; the PEG ratio of the company is 3.8
4
High Institutional Holdings at 33.91%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
With its market cap of Rs 1,73,106 cr, it is the biggest company in the sector and constitutes 44.20% of the entire sector
- Its annual Sales of Rs 22,692.63 are 35.10% of the industry
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?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Varun Beverages
-0.96%
-0.03
29.40%
Sensex
-3.33%
-0.25
13.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
26.47%
EBIT Growth (5y)
38.62%
EBIT to Interest (avg)
12.44
Debt to EBITDA (avg)
1.13
Net Debt to Equity (avg)
0.03
Sales to Capital Employed (avg)
1.27
Tax Ratio
23.50%
Dividend Payout Ratio
13.03%
Pledged Shares
0.00%
Institutional Holding
33.91%
ROCE (avg)
22.35%
ROE (avg)
21.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
54
Industry P/E
56
Price to Book Value
8.79
EV to EBIT
43.01
EV to EBITDA
32.48
EV to Capital Employed
8.59
EV to Sales
7.61
PEG Ratio
3.78
Dividend Yield
0.39%
ROCE (Latest)
19.08%
ROE (Latest)
15.51%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
PAT(Q)
At Rs 872.36 cr has Grown at 20.1%
-4What is not working for the Company
ROCE(HY)
Lowest at 18.92%
DEBTORS TURNOVER RATIO(HY)
Lowest at 17.79 times
Loading Valuation Snapshot...
Here's what is working for Varun Beverages
Profit After Tax (PAT) - Quarterly
At Rs 872.36 cr has Grown at 20.1%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Varun Beverages
Debtors Turnover Ratio- Half Yearly
Lowest at 17.79 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
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