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 25.26% and Operating profit at 34.33%
- Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.50 times
2
Positive results in Jun 26
- NET SALES(Q) At Rs 8,451.23 cr has Grown at 20.43%
- PBDIT(Q) Highest at Rs 2,343.04 cr.
- PBT LESS OI(Q) Highest at Rs 1,872.80 cr.
3
With ROE of 15.5, it has a Very Expensive valuation with a 7.6 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 -12.44%, its profits have risen by 18.9% ; the PEG ratio of the company is 2.3
4
High Institutional Holdings at 34.24%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Below par performance in long term as well as near term
- Along with generating -12.44% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
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, Low Return
Absolute
Risk Adjusted
Volatility
Varun Beverages
-13.03%
-0.42
29.79%
Sensex
-2.39%
-0.17
13.58%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
25.26%
EBIT Growth (5y)
34.33%
EBIT to Interest (avg)
13.40
Debt to EBITDA (avg)
1.13
Net Debt to Equity (avg)
0.03
Sales to Capital Employed (avg)
1.27
Tax Ratio
23.22%
Dividend Payout Ratio
16.71%
Pledged Shares
0.00%
Institutional Holding
34.24%
ROCE (avg)
22.35%
ROE (avg)
21.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
44
Industry P/E
54
Price to Book Value
7.64
EV to EBIT
35.29
EV to EBITDA
26.54
EV to Capital Employed
7.48
EV to Sales
6.22
PEG Ratio
2.34
Dividend Yield
0.45%
ROCE (Latest)
19.08%
ROE (Latest)
15.51%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
NET SALES(Q)
At Rs 8,451.23 cr has Grown at 20.43%
PBDIT(Q)
Highest at Rs 2,343.04 cr.
PBT LESS OI(Q)
Highest at Rs 1,872.80 cr.
PAT(Q)
Highest at Rs 1,520.80 cr.
EPS(Q)
Highest at Rs 4.50
-1What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Varun Beverages
Net Sales - Quarterly
Highest at Rs 8,451.23 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 8,451.23 cr has Grown at 20.43%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 2,343.04 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 1,872.80 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 1,520.80 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 4.50
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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