Varun Beverages

Market Cap: Large Cap
Industry: Beverages
ISIN: INE200M01039
NSEID: VBL
BSEID: 540180
View on NSE | View on BSE

INR

451.30

-15.2 (-3.26%)

BSENSE

Feb 03

BSE+NSE Vol: 3.05 cr

Access older stock analysis version

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Radico Khaitan

Allied Blenders

Tilaknagar Inds.

Globus Spirits

G M Breweries

Varun Beverages

United Spirits

Sula Vineyards

United Breweries

Som Distilleries

Assoc.Alcohols

Why is Varun Beverages Ltd ?

Flat results in Dec 25

NO KEY NEGATIVE TRIGGERS

With ROE of 15.5, it has a Very Expensive valuation with a 8.3 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 -22.57%, its profits have risen by 17% ; the PEG ratio of the company is 3

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 9.12% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.57% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Varun Beverages for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Varun Beverages

-22.57%

-0.74

30.61%

Sensex

8.49%

0.74

11.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.27%

EBIT Growth (5y)

44.29%

EBIT to Interest (avg)

11.93

Debt to EBITDA (avg)

1.30

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.27

Tax Ratio

23.63%

Dividend Payout Ratio

13.03%

Pledged Shares

0.04%

Institutional Holding

33.87%

ROCE (avg)

21.56%

ROE (avg)

22.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.31

EV to EBIT

39.82

EV to EBITDA

30.23

EV to Capital Employed

8.32

EV to Sales

7.04

PEG Ratio

2.95

Dividend Yield

0.33%

ROCE (Latest)

21.24%

ROE (Latest)

15.51%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

PBT LESS OI(Q)

At Rs 259.78 cr has Grown at 24.00%

PAT(Q)

At Rs 251.79 cr has Grown at 36.0%

-1What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Loading Valuation Snapshot...

Here's what is working for Varun Beverages

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 259.78 cr has Grown at 24.00%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 251.79 cr has Grown at 36.0%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)