Varun Beverages Share Price Target 2024-2030 Fundamentals & Quarterly Results

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 Share Price Target

Varun Beverages Overview

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 NameVarun Beverages Ltd
Listed atNSE & BSE
Head OfficeF- 2/7, Okhla Industrial Area, Phase-I,, New Delhi Delhi 110020
Board Of Directors
  • Mr.Varun Jaipuria Exe.Vice Chairman & Whole Time Director
  • Mr.Rajinder Jeet Singh Bagga Executive & Wholetime Director
  • Mr.Raj Pal Gandhi Executive & Wholetime Director
  • Dr.Ravi Gupta Ind. Non-Executive Director
  • Ms.Sita Khosla Ind. Non-Executive Director
  • Mr.Anil Kumar Sondhi Ind. Non-Executive Director
  • Mr.Abhiram Seth Ind. Non-Executive Director
  • Ms.Rashmi Dhariwal Ind. Non-Executive Director
  • Mr.Ravi Kant Jaipuria Non Executive Chairman
Official Websitevarunbeverages.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/E77.6
Book Value₹ 26.4
Dividend Yield0.17 %
ROCE28.8 %
ROE35.2 %
Face Value₹ 2.00
Free Cash Flow (Prev Ann)₹ 40.1 Cr.
Debt to Equity0.79
Debt (Preceding Year)₹ 3,884 Cr.
Reserves₹ 7,928 Cr.
Quick Ratio0.47
Current Ratio0.93
Free Cash Flow (Current)₹ -803 Cr.
PEG Ratio1.64
Piotroski Score7.00
Pledged Percentage0.04 %
Interest Coverage10.0
Debt (3 Years Back)₹ 3,216 Cr.
Graham Number₹ 66.6
Debt (Current)₹ 6,761 Cr.
Volume1,18,57,235

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Varun Beverages Quarterly Results

QuarterJun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales +4,9553,1772,2143,8935,6113,8712,6684,3177,197
Expenses +3,7042,4781,9073,0954,1012,9892,2493,3295,206
Operating Profit1,2516993077981,5118824189891,991
OPM %25%22%14%20%27%23%16%23%28%
Other Income +101191042199844
Interest4645476369627494129
Depreciation153153180172172171166188242
Profit before tax1,062511905731,3116671887161,663
Tax %24%23%9%24%23%23%24%23%24%
Net Profit +802395824391,0055141445481,262
EPS in Rs2.421.170.231.323.061.540.411.653.86

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CAGR Report

Metric10 Years5 Years3 YearsTTM / 1 Year
Compounded Sales Growth22%26%35%21%
Compounded Profit Growth49%47%77%29%
Stock Price CAGR60%69%56%
Return on Equity23%25%30%35%

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Varun Beverages Shareholding Pattern

Year / QuarterMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Jun 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 Shareholders31,53130,23546,36056,213137,208261,286489,887509,607

Varun Beverages Share Price Target 2024-2030 Forecast

YearInitial TargetMid-Year TargetYear-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

Varun Beverages Share Price Target 2025

MonthTarget
January₹2753
February₹2808
March₹2864
April₹2769
May₹2677
June₹2588
July₹2692
August₹2800
September₹2912
October₹2970
November₹3029
December₹3090

Varun Beverages Share Price Target 2026

MonthTarget
January₹3152
February₹3215
March₹3279
April₹3170
May₹3064
June₹2962
July₹3080
August₹3203
September₹3331
October₹3398
November₹3466
December₹3535

Varun Beverages Share Price Target 2027

MonthTarget
January₹3606
February₹3678
March₹3752
April₹3627
May₹3506
June₹3389
July₹3525
August₹3666
September₹3813
October₹3889
November₹3967
December₹4046

Varun Beverages Share Price Target 2028

MonthTarget
January₹4127
February₹4210
March₹4294
April₹4151
May₹4013
June₹3879
July₹4034
August₹4195
September₹4363
October₹4450
November₹4539
December₹4630

Varun Beverages Share Price Target 2029

MonthTarget
January₹4723
February₹4817
March₹4913
April₹4749
May₹4591
June₹4438
July₹4616
August₹4801
September₹4993
October₹5093
November₹5195
December₹5299

Varun Beverages Share Price Target 2030

MonthTarget
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

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