Varun Beverages Share Price Target 2024 2025 2026 2027 2028 2029 2030 Fundamentals & Quarterly Results –Incorporated in India, Varun Beverages Limited is the franchisee of PepsiCo. It manufactures and sells various kinds of carbonated soft drinks (CSDs) as well as a wide range of non-carbonated beverages (NCBs) including bottled drinking water produced and marketed under brands owned by PepsiCo. The company takes pride in selling a variety of PepsiCo CSD brands including but not limited to: Pepsi and Pepsi Black, Mountain Dew, Sting, 7 Up, Mirinda Orange, Seven Up Nimbooz Masala Soda, and Evervess.
Varun Beverages Overview
Contents
Since the 1990s, Varun Beverages Ltd has been associated with PepsiCo and beverage industry in general and is one of the largest franchisee of PepsiCo in the world. The firm manufactures and sells a variety of carbonated soft drinks, non-carbonated beverages and bottled water which is marketed under the brand names owned by PepsiCo. PepsiCo trademarks that the firm makes and offers for sale include Pepsi, Seven-up, Mirinda Orange, Mountain Dew, Tropicana Juices and others.
Company Name | Varun Beverages Ltd |
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Listed at | NSE & BSE |
Head Office | F- 2/7, Okhla Industrial Area, Phase-I,, New Delhi Delhi 110020 |
Board Of Directors |
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Official Website | varunbeverages.com |
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Varun Beverages Business Profile
PepsiCo’s CSD portfolio comprises brands like Phillips, Diet Phillips, Seven up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Seven up Nimbooz Masala Soda, Evervess Soda, Sting and Gatorade. The company’s NCB portfolio comprises brands like Tropicana (100%, Essentials & Delight), Tropicana Slice, Tropicana Frutz, Seven up Nimbooz, Quaker Oat Milk as well as bottled water under the Aquafina brand. Moreover the company has also been awarded the franchise for the Ole category of PepsiCo products in the country of Sri Lanka.
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Presence
At the end of the first quarter of the fiscal year 2025, it operates in 10 countries with franchise agreements and 4 countries with distribution agreements. In FY24, the Indian subcontinent (India, Sri Lanka, and Nepal) generated ~83% of revenues from 3 territories, whilst Africa (Morocco, Zambia, and Zimbabwe) generated approximately 17% of total revenues from 3 territories.
On March 24, Co. integrated the franchised areas of South Africa, Lesotho & Eswatini together with the distribution rights areas of Namibia, Botswana, Mozambique and Madagascar.
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Distribution Network
VBL operates in India 36 manufacturing units as of Q1FY25, with another 12 located outside India. It has a strong supply chain comprising of over 130 owned depots, more than 2500 owned vehicles, over 2500 primary distributors and 10.2 crore + installed visi-coolers. Their extensive network has access to every fifth person living on Earth.
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In Jul,24, VBL commenced commercial production of carbonated soft drinks and packaged drinking water at Kinshasa, Democratic Republic of Congo. The plant has two CSD/Water PET lines with installed capacity of 550 BPM each.
Backward Integration
To achieve operational efficiencies and maintain a high level of quality, the Corporation has developed back integration facilities for the manufacture of preforms crowns and plastic closures, corrugated boxes as well as corrugated pads, plastic crates and shrink wrap films among other products in some of its facilities. The corporation has 3 dedicated locations + 14 composite factories for the same.
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The corporation owned 55 stakes in Lunarmech Technologies Ltd. (35% owned indirectly, while 20% is direct control), a firm that manufactures and retails PET bottle caps and crown caps.
Brands
PepsiCo. franchised Brands – Pepsi, Tropicana, Slice, 7UP, Sting, Kurkure, Aquafina, Lipton, Doritos, Mirinda, Fritolay etc.
Own Brands – Jive, Cooe, Reboost, Creambell, Aquaclear, Refreshh etc.
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Acquisition
In H1FY24, the company undertook a 100% acquisition of the business of The Beverage Company (Proprietary) Limited, its fully owned subsidiaries in South Africa (herein referred to as “BevCo”) for ~Rs. 13200 crs).
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Varun Beverages Fundamentals, CAGR & Quarterly Results
Market Cap | ₹ 1,88,066 Cr. |
Current Price | ₹ 579 |
High / Low | ₹ 683 / 331 |
Stock P/E | 77.6 |
Book Value | ₹ 26.4 |
Dividend Yield | 0.17 % |
ROCE | 28.8 % |
ROE | 35.2 % |
Face Value | ₹ 2.00 |
Free Cash Flow (Prev Ann) | ₹ 40.1 Cr. |
Debt to Equity | 0.79 |
Debt (Preceding Year) | ₹ 3,884 Cr. |
Reserves | ₹ 7,928 Cr. |
Quick Ratio | 0.47 |
Current Ratio | 0.93 |
Free Cash Flow (Current) | ₹ -803 Cr. |
PEG Ratio | 1.64 |
Piotroski Score | 7.00 |
Pledged Percentage | 0.04 % |
Interest Coverage | 10.0 |
Debt (3 Years Back) | ₹ 3,216 Cr. |
Graham Number | ₹ 66.6 |
Debt (Current) | ₹ 6,761 Cr. |
Volume | 1,18,57,235 |
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Varun Beverages Quarterly Results
Quarter | Jun 2022 | Sep 2022 | Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 |
---|---|---|---|---|---|---|---|---|---|
Sales + | 4,955 | 3,177 | 2,214 | 3,893 | 5,611 | 3,871 | 2,668 | 4,317 | 7,197 |
Expenses + | 3,704 | 2,478 | 1,907 | 3,095 | 4,101 | 2,989 | 2,249 | 3,329 | 5,206 |
Operating Profit | 1,251 | 699 | 307 | 798 | 1,511 | 882 | 418 | 989 | 1,991 |
OPM % | 25% | 22% | 14% | 20% | 27% | 23% | 16% | 23% | 28% |
Other Income + | 10 | 11 | 9 | 10 | 42 | 19 | 9 | 8 | 44 |
Interest | 46 | 45 | 47 | 63 | 69 | 62 | 74 | 94 | 129 |
Depreciation | 153 | 153 | 180 | 172 | 172 | 171 | 166 | 188 | 242 |
Profit before tax | 1,062 | 511 | 90 | 573 | 1,311 | 667 | 188 | 716 | 1,663 |
Tax % | 24% | 23% | 9% | 24% | 23% | 23% | 24% | 23% | 24% |
Net Profit + | 802 | 395 | 82 | 439 | 1,005 | 514 | 144 | 548 | 1,262 |
EPS in Rs | 2.42 | 1.17 | 0.23 | 1.32 | 3.06 | 1.54 | 0.41 | 1.65 | 3.86 |
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CAGR Report
Metric | 10 Years | 5 Years | 3 Years | TTM / 1 Year |
---|---|---|---|---|
Compounded Sales Growth | 22% | 26% | 35% | 21% |
Compounded Profit Growth | 49% | 47% | 77% | 29% |
Stock Price CAGR | 60% | 69% | 56% | |
Return on Equity | 23% | 25% | 30% | 35% |
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Year / Quarter | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Jun 2024 |
---|---|---|---|---|---|---|---|---|
Promoters + | 73.57% | 73.56% | 68.04% | 66.40% | 64.89% | 63.90% | 62.91% | 62.67% |
FIIs + | 13.41% | 13.51% | 19.82% | 20.28% | 21.03% | 26.00% | 25.79% | 25.32% |
DIIs + | 4.91% | 6.42% | 6.30% | 5.90% | 7.21% | 3.67% | 4.16% | 4.54% |
Public + | 8.11% | 6.51% | 5.84% | 7.42% | 6.87% | 6.41% | 7.16% | 7.46% |
No. of Shareholders | 31,531 | 30,235 | 46,360 | 56,213 | 137,208 | 261,286 | 489,887 | 509,607 |
Year | Initial Target | Mid-Year Target | Year-End Target |
---|---|---|---|
2024 | ₹1971.58 | ₹2426.25 | ₹2699.05 |
2025 | ₹2753 | ₹2588 | ₹3090 |
2026 | ₹3152 | ₹2962 | ₹3535 |
2027 | ₹3606 | ₹3389 | ₹4046 |
2028 | ₹4127 | ₹3879 | ₹4630 |
2029 | ₹4723 | ₹4438 | ₹5299 |
2030 | ₹5405 | ₹5080 | ₹6064 |
Month | Target |
January | ₹2753 |
February | ₹2808 |
March | ₹2864 |
April | ₹2769 |
May | ₹2677 |
June | ₹2588 |
July | ₹2692 |
August | ₹2800 |
September | ₹2912 |
October | ₹2970 |
November | ₹3029 |
December | ₹3090 |
Month | Target |
January | ₹3152 |
February | ₹3215 |
March | ₹3279 |
April | ₹3170 |
May | ₹3064 |
June | ₹2962 |
July | ₹3080 |
August | ₹3203 |
September | ₹3331 |
October | ₹3398 |
November | ₹3466 |
December | ₹3535 |
Month | Target |
January | ₹3606 |
February | ₹3678 |
March | ₹3752 |
April | ₹3627 |
May | ₹3506 |
June | ₹3389 |
July | ₹3525 |
August | ₹3666 |
September | ₹3813 |
October | ₹3889 |
November | ₹3967 |
December | ₹4046 |
Month | Target |
January | ₹4127 |
February | ₹4210 |
March | ₹4294 |
April | ₹4151 |
May | ₹4013 |
June | ₹3879 |
July | ₹4034 |
August | ₹4195 |
September | ₹4363 |
October | ₹4450 |
November | ₹4539 |
December | ₹4630 |
Month | Target |
January | ₹4723 |
February | ₹4817 |
March | ₹4913 |
April | ₹4749 |
May | ₹4591 |
June | ₹4438 |
July | ₹4616 |
August | ₹4801 |
September | ₹4993 |
October | ₹5093 |
November | ₹5195 |
December | ₹5299 |
Month | Target |
January | ₹5405 |
February | ₹5513 |
March | ₹5623 |
April | ₹5436 |
May | ₹5255 |
June | ₹5080 |
July | ₹5283 |
August | ₹5494 |
September | ₹5714 |
October | ₹5828 |
November | ₹5945 |
December | ₹6064 |
Official Website – varunbeverages.com