Varun Beverages Ltd
NSE: VBL BSE: 540180
â‚ą425.30
(1.55%)
Fri, 09 Oct 2026, 09:37 pm
Market Cap (in Cr)146005.38
PE Ratio42.48
Dividend0.35
Consumer Non-Durables
Beverages: Non-Alcoholic
24.5KVarun Beverages Analysis
dividend
- Dividends paid are thoroughly covered by earnings (6.8x coverage).
- Dividends after 3 years are expected to be well covered by earnings (6.3x coverage).
- Dividend payments have increased, but Varun Beverages only paid a dividend in the past 3 years.
- Whilst dividend payments have been stable, Varun Beverages has been paying a dividend for less than 10 years.
- Varun Beverages's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
- Varun Beverages's dividend is below the markets top 25% of dividend payers in India (3.08%).
future
- Varun Beverages's earnings are expected to grow significantly at over 20% yearly.
- Varun Beverages's earnings growth is expected to exceed the India market average.
- Varun Beverages's earnings growth is expected to exceed the low risk savings rate of 7.2%.
- Varun Beverages's earnings are expected to increase by more than the low risk growth rate in 3 years time.
- Performance (ROE) is expected to be above the current IN Beverage industry average.
- An improvement in Varun Beverages's performance (ROE) is expected over the next 3 years.
- Varun Beverages's revenue growth is expected to exceed the India market average.
- Cash flow for Varun Beverages is expected to increase but not above the 50% threshold in 2 years time.
- Varun Beverages's earnings are expected to decrease over the next year.
- Varun Beverages's net income is expected to increase but not above the 50% threshold in 2 years time.
- Varun Beverages is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
- Varun Beverages's revenue is expected to increase but not above the 50% threshold in 2 years time.
- Varun Beverages's revenue is expected to grow by 15.9% yearly, however this is not considered high growth (20% yearly).
health
- Varun Beverages is profitable, therefore cash runway is not a concern.
- Varun Beverages is profitable, therefore cash runway is not a concern.
- Debt is well covered by operating cash flow (38.2%, greater than 20% of total debt).
- The level of debt compared to net worth has been reduced over the past 5 years (546.3% vs 101.7% today).
- Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).
- Varun Beverages's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Debt is not covered by short term assets, assets are 0.5x debt.
- Varun Beverages's long term commitments exceed its cash and other short term assets.
- Varun Beverages's level of debt (101.7%) compared to net worth is high (greater than 40%).
- High level of physical assets or inventory.
management
- Kapil's remuneration is about average for companies of similar size in India.
- Kapil's compensation has been consistent with company performance over the past year, both up more than 20%.
- The average tenure for the Varun Beverages board of directors is less than 3 years, this suggests a new board.
- Varun Beverages individual insiders have sold more shares than they have bought in the past 3 months.
past
- Varun Beverages's 1-year earnings growth exceeds its 5-year average (52.9% vs 39.2%)
- Varun Beverages has delivered over 20% year on year earnings growth in the past 5 years.
- Varun Beverages used its assets more efficiently than the IN Beverage industry average last year based on Return on Assets.
- Varun Beverages has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
- Varun Beverages's earnings growth has exceeded the IN Beverage industry average in the past year (52.9% vs -6%).
- Varun Beverages has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
value
- Varun Beverages is good value based on expected growth next year.
- VBL outperformed the Beverage industry which returned -1.3% over the past year.
- VBL outperformed the Market in India which returned -14.5% over the past year.
- Varun Beverages's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
- Varun Beverages's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
- Varun Beverages is overvalued based on assets compared to the IN Beverage industry average.
- Varun Beverages is overvalued based on earnings compared to the IN Beverage industry average.
- Varun Beverages is overvalued based on earnings compared to the India market.
- NSEI:VBL is up 2.4% underperforming the Beverage industry which returned 9.9% over the past month.
- NSEI:VBL is up 2.4% underperforming the market in India which returned 8% over the past month.
