Varun Beverages Ltd

Varun Beverages Ltd

₹ 1,428 -1.43%
04 Mar 4:01 p.m.
About

Varun Beverages Ltd has been associated with PepsiCo since the 1990s and is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and packaged water sold under trademarks owned by PepsiCo.
PepsiCo brands produced and sold by the company include Pepsi, Seven-up, Mirinda Orange, Mountain Dew, Tropicana Juices and many more. [1]

Key Points

Part of RJ Corporation[1]
Varun Beverages is a part of the RJ group, which is the largest franchisee for Pizza Hut, KFC, Cream Bell, and Costa Coffee in India.

  • Market Cap 1,85,566 Cr.
  • Current Price 1,428
  • High / Low 1,562 / 633
  • Stock P/E 90.3
  • Book Value 53.4
  • Dividend Yield 0.09 %
  • ROCE 27.8 %
  • ROE 34.2 %
  • Face Value 5.00

Pros

  • Company has delivered good profit growth of 46.4% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 29.8%
  • Company's median sales growth is 21.8% of last 10 years

Cons

  • Stock is trading at 26.7 times its book value
  • Company might be capitalizing the interest cost
  • Promoter holding has decreased over last 3 years: -3.31%

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

Peer comparison

Sector: FMCG Industry: Food - Processing - Indian

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023
1,331 2,241 2,450 2,398 1,734 2,827 4,955 3,177 2,214 3,893 5,611 3,871 2,668
1,159 1,859 1,879 1,904 1,527 2,296 3,704 2,478 1,907 3,095 4,101 2,989 2,249
Operating Profit 172 382 571 495 208 531 1,251 699 307 798 1,511 882 418
OPM % 13% 17% 23% 21% 12% 19% 25% 22% 14% 20% 27% 23% 16%
6 6 24 37 1 9 10 11 9 10 42 19 9
Interest 62 58 47 43 37 47 46 45 47 63 69 62 74
Depreciation 135 135 129 138 129 131 153 153 180 172 172 171 166
Profit before tax -19 195 420 350 42 361 1,062 511 90 573 1,311 667 188
Tax % 62% 30% 24% 26% 22% 25% 24% 23% 9% 24% 23% 23% 24%
-7 137 319 258 33 271 802 395 82 439 1,005 514 144
EPS in Rs -0.15 0.99 2.37 1.85 0.13 1.96 6.06 2.93 0.58 3.30 7.65 3.86 1.02
Raw PDF

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021 Dec 2022 Dec 2023
1,800 2,115 2,502 3,394 3,861 4,004 5,105 7,130 6,450 8,823 13,173 16,043
1,572 1,824 2,116 2,752 3,052 3,165 4,069 5,667 5,235 7,129 10,310 12,434
Operating Profit 228 291 387 642 810 838 1,036 1,462 1,215 1,694 2,863 3,609
OPM % 13% 14% 15% 19% 21% 21% 20% 21% 19% 19% 22% 22%
44 19 14 36 27 14 6 47 -30 51 -18 79
Interest 116 171 187 170 435 215 223 324 294 207 204 268
Depreciation 136 184 210 317 322 347 385 489 529 531 617 681
Profit before tax 21 -46 4 191 79 291 434 696 363 1,007 2,024 2,739
Tax % -20% 11% 658% 41% 39% 26% 31% 32% 1% 26% 23% 23%
25 -40 -20 113 48 214 300 472 357 746 1,550 2,102
EPS in Rs 4.65 -0.44 -0.22 1.25 0.34 1.70 2.38 3.61 2.53 5.34 11.53 15.82
Dividend Payout % 0% 0% 0% 0% 0% 22% 16% 15% 22% 16% 15% 16%
Compounded Sales Growth
10 Years: 22%
5 Years: 26%
3 Years: 35%
TTM: 22%
Compounded Profit Growth
10 Years: 48%
5 Years: 46%
3 Years: 75%
TTM: 34%
Stock Price CAGR
10 Years: %
5 Years: 64%
3 Years: 84%
1 Year: 111%
Return on Equity
10 Years: 23%
5 Years: 25%
3 Years: 30%
Last Year: 34%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021 Dec 2022 Dec 2023
Equity Capital 8 134 134 134 182 183 183 289 289 433 650 650
Reserves 145 82 9 91 1,511 1,587 1,816 3,040 3,235 3,647 4,453 6,287
Preference Capital 0 0 200 450 0 0 0 0 0 0 0
1,940 2,332 2,415 2,077 2,215 2,654 2,808 3,417 3,216 3,387 3,884 5,431
460 439 733 2,130 915 852 1,192 1,630 1,707 2,113 2,632 2,819
Total Liabilities 2,553 2,986 3,292 4,431 4,824 5,276 5,998 8,376 8,447 9,579 11,618 15,187
1,713 2,375 2,355 3,496 3,716 3,981 4,387 6,479 6,409 6,311 6,932 8,409
CWIP 189 27 25 38 96 145 352 64 67 497 607 1,922
Investments 0 1 304 3 7 8 11 0 0 0 0 21
651 583 608 894 1,006 1,141 1,247 1,833 1,972 2,772 4,079 4,835
Total Assets 2,553 2,986 3,292 4,431 4,824 5,276 5,998 8,376 8,447 9,579 11,618 15,187

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021 Dec 2022 Dec 2023
280 297 431 555 826 620 1,000 1,308 1,012 1,231 1,790 2,391
-507 -574 -500 -300 -1,048 -746 -937 -2,320 -472 -1,008 -1,769 -3,290
229 274 58 -236 230 159 -84 1,107 -574 -178 -18 985
Net Cash Flow 3 -2 -11 19 8 32 -22 95 -33 46 4 86

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021 Dec 2022 Dec 2023
Debtor Days 18 11 14 11 12 14 9 9 14 9 8 8
Inventory Days 82 75 77 90 103 88 94 100 123 131 116 106
Days Payable 32 42 48 39 58 38 52 54 68 64 48 37
Cash Conversion Cycle 68 44 43 62 58 64 52 55 69 76 76 77
Working Capital Days 46 28 -24 -46 -50 -33 -23 -13 -6 30 32 38
ROCE % 5% 7% 12% 16% 12% 15% 18% 11% 17% 27%

Shareholding Pattern

Numbers in percentages

1 Recently
Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
66.40% 65.82% 64.89% 64.89% 64.89% 63.90% 63.90% 63.90% 63.90% 63.61% 63.09% 63.09%
20.28% 20.73% 21.72% 21.23% 21.03% 23.93% 25.01% 26.45% 26.00% 26.71% 27.55% 26.58%
5.90% 5.83% 6.77% 7.06% 7.21% 5.31% 4.45% 3.42% 3.67% 3.16% 3.36% 3.58%
7.42% 7.62% 6.62% 6.82% 6.87% 6.86% 6.62% 6.20% 6.41% 6.52% 6.01% 6.74%
No. of Shareholders 56,2131,08,8751,15,4501,37,9391,37,2081,73,9352,35,8042,44,9752,61,2863,53,7423,75,5344,40,278

* The classifications might have changed from Sep'2022 onwards. The new XBRL format added more details from Sep'22 onwards.

Classifications such as banks and foreign portfolio investors were not available earlier. The sudden changes in FII or DII can be because of these changes.

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