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Varun Beverages Ltd share Price Today

Company details

1,505.00
1,520.00
755.00
1,561.95
6M Return 45.24%
1Y Return 92.30%
Mkt Cap.(Cr) 196,924.68
Volume 176,390
Div Yield 0.17%
OI
-
OI Chg %
-
Volume 176,390

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About The Stock

    Varun Beverage (VBL) is one of the largest franchisees of PepsiCo in the world. The company produces & distributes carbonated drinks, juices & packaged drinking water in six countries including India.          Some of the PepsiCo brands produced by VBL include Pepsi, Diet Pepsi, Seven-Up, Mirinda, Mountain Dew, Nimbooz, String, Slice, Tropicana, Aquafina among others.

    • The company has operations in India (except Andhra Pradesh, J&K & Ladakh), Sri Lanka, Nepal, Morocco, Zambia and Zimbabwe
Q1CY23 Results

    Varun Beverages witnessed strong volume growth of 24.7%

    • Sales were up 37.7% YoY led by 24.7% volume & 10.4% realisation growth
    • EBITDA was at ₹ 798 crore, up 50.3% YoY, with margins at 20.5%
    • Consequently, PAT was at ₹ 438.6 crore, up 61.8%

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Non-Alchoholic Beverages company Varun Beverages announced Q1CY24 results:

  • Revenue from operations (net of excise / GST) grew by 10.9% YoY to Rs 43,173.1 million in Q1CY24 as compared to Rs 38,929.8 million in Q1CY23
  • Total sales volume grew by 7.2% to 240.2 million cases in Q1CY24 from 224.1 million cases in Q1CY23. During the quarter, India territory grew by 4.4% and International markets by 21.9%, in-spite of delay in the holi festival by 17 days resulting in delayed seasonality cycle.
  • Net realization per case increased by 3.5% in Q1CY24 to Rs 179.7 on account of improving product mix in India and higher contribution of international markets which have higher realization per case
  • Gross margins improved by 385 bps to 56.3% from 52.4% during Q1CY24 primarily due to reduced PET prices as well as the focus on reducing sugar content and light-weighting of packaging. Approx. 46% of our consolidated sales volumes come from Low sugar / No sugar products.
  • EBITDA increased by 23.9% to Rs 9,887.6 million YoY and EBITDA margin improved by 240 bps to 22.9% in Q1CY24, led by higher gross margins and increased realization. This improvement is in-spite of rise in fixed costs associated with the acquisition of new territories and commissioning of new greenfield plants for the season.
  • PAT increased by 25% to Rs 5,479.8 million from Rs 4,385.7 million in Q1CY23 driven by volume growth, increase in net realization and improved profit margins

Commenting on the performance for Q1CY24 Ravi Jaipuria, Chairman, Varun Beverages Limited said, "In-spite of delay in the holi festival by 17 days resulting in delayed seasonality cycle, we are pleased to report a reasonably strong overall operational and financial performance in the first quarter of the year. We achieved a consolidated sales revenue growth of 10.9% with a break-up of volume growth of 7.2% and net realization per case growth of 3.5% in Q1, reflecting an improved product mix in India and higher contributions from international markets. Overall, EBITDA increased by 23.9% year on year and PAT increased by 24.9%.

Further, our sustainability efforts, including the focus on reducing sugar content, removal of corrugated pads in packaging, and light-weighting of packaging material have started showing results by increase in gross margins. During last quarter, we also published our sustainability report in accordance with the GRI reporting standards. We are committed to transparency and accountability in our sustainability reporting practices, and we believe that using the GRI Standards allows us to provide comprehensive and comparable information to our stakeholders.

To fulfil our growth commitment in our core market i.e. India, we commenced three new greenfield facilities located in Supa, Maharashtra; Gorakhpur, Uttar Pradesh; and Khordha, Odisha. This expansion is designed to meet the rising demand for beverages in India and support our long-term growth trajectory.

Our greenfield plant at DRC is expected to start by the next quarter.

A significant highlight of the quarter was the successful completion of the strategic acquisition of The Beverage Company (BevCo) in South Africa. This move has notably expanded our footprint and fortified our presence across several dynamic markets in the African region.

Furthermore, Varun Beverages Morocco SA, a wholly-owned subsidiary, has entered into an Exclusive Snacks Appointment Agreement to manufacture and package Cheetos in Morocco, by May 2025. This agreement complements our existing distribution of PepsiCo’s snack portfolio, marking another step forward in our strong symbiotic partnership.

In nutshell, we have fueled three growth engines which shall gradually and consistently contribute to revenue and profitability growth in the Company. First growth engine is the South Africa’s combined territory with Lesotho, Eswatini, Namibia, Botswana, Mozambique and Madagascar. Second growth engine is entry into new territory of DRC where PepsiCo is not present at all as of now, the commercial production here from our new state of the art greenfield plant is expected to start from the next quarter. The third growth engine is entry into snack food production by May 2025 in Morocco.”

Result PDF

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Varun Beverages Ltd shares SWOT Analysis

Strengths (9)

  • Strong Momentum: Price above short, medium and long term moving averages
  • Effectively using Shareholders fund - Return on equity (ROE) improving since last 2 year
  • Efficient in managing Assets to generate Profits - ROA improving since last 2 year

Weakness (2)

  • MFs decreased their shareholding last quarter
  • Book Value Per Share deteriorating for last 2 years

Opportunity (2)

  • Negative to Positive growth in Sales and Profit with Strong Price momentum
  • RSI indicating price strength

Threats (3)

  • Promoter decreasing their shareholding
  • Companies with growing costs YoY for long term projects
  • High PE (PE > 40)

Resistance and support

R1 1,516.5
R2 1,525.8
R3 1,531.5
Pivot

1,510.75

S1 1,501.5
S2 1,495.8
S3 1,486.5
EMA SMA
1,476.7
1,440.4
1,362.1
1,209.7
1,477.0
1,441.6
1,384.5
1,170.1
Delivery and volume
Name Category Shares
Ravi Kant Jaipuria PROMOTER 17.46%
Varun Jaipuria PROMOTER 16.03%
Devyani Jaipuria PROMOTER 2.43%
RJ Corp Limited PROMOTER 26.92%

OUR RESEARCH VIEW

Trading recommendation

Call Date
04 Aug 2021
Entry Price 789.00
Target Price 950.00
Duration
Stop Loss -
Investment recommendation
Splendid volume growth continues…
Call Date
03 May 2023
Entry Price 1,417.00
Target Price 1,470.00
Duration
12-18 Month

FINANCIALS

Sales
Operating Profit
Profit after Tax
Equity
Reserves and Surplus
Debt
Sales
Operating Profit
Profit after Tax
PE
Debt/Equity
P BV

Varun Beverages Ltd Stocks COMPARISON

Financials( in Cr) Varun Beverages Ltd Hindustan Unilever Ltd Nestle India Ltd Godrej Consumer Products Ltd Britannia Industries Ltd
Price 1,515.50 2,320.35 2,445.50 1,295.10 5,086.80
% Change 1.07 -0.13 -0.79 0.27 0.45
Mcap Cr 196,924.68 545,187.35 235,784.59 132,465.42 122,524.73
Revenue TTM Cr 16,042.58 60,580.00 17,423.38 13,315.97 16,300.55
Net Profit TTM Cr 2,101.81 10,143.00 2,390.52 1,702.46 2,316.32
PE TTM 90.48 53.23 75.66 69.35 57.25
1 Year Return 92.30 -11.69 12.80 28.38 11.45
ROCE 27.83 24.88 59.47 16.35 48.18
ROE 34.92 20.42 108.52 13.43 66.62
INSIDER & INSTITUTIONAL ACTIVITY

Equity Capital: 6,936.15 Cr FV: 5.00

Period MF Net Purchase / (sold) FII Net
LAST 1M 45,096.27 -32,431.93
LAST 3M 105,135.14 -41,239.38
LAST 6M 172,248.08 48,806.90
LAST 12M 264,707.07 127,969.33
Varun Beverages Limited - Analysts/Institutional Investor Meet/Con. Call Updates

May 14, 2024 l NSE Announcement

NSE Board Meetings Forthcomming

May 13, 2024 l NSE Board Meetings Forthcomming

Varun Beverages Limited - ESOP/ESOS/ESPS

May 13, 2024 l NSE Announcement

Date Action Type Ratio
Apr 04, 2024 Dividend 25
Aug 14, 2023 Dividend 25
Jun 15, 2023 Split 1:2

Varun Beverages Ltd Information

Stock PE (TTM)
90.48
Promoter Holding
62.91%
Book Value
53.3802
ROCE
27.83%
ROE
34.92%
Description
  • Varun Beverages Ltd. is an Indian-based company involved in producing, bottling, and distributing beverages. It was incorporated in 1995 under the parent company RJ Corporation. The company’s headquarters are based in Gurgaon. For the quarter ended June 2022, the company recorded a profit of Rs 787.44 crore after tax, up 209.76% from the previous quarter ended March 2022. On 5 August 2022, its market capitalisation was worth Rs 66,595 crore.
    The company’s Bombay Stock Exchange listing code is 540180, and the National Stock Exchange listing code is VBL.
    Varun Beverages Ltd. manufactures carbonated soft drinks, soft drinks, and non-alcoholic beverages. It is the world’s second-largest bottling company of PepsiCo’s beverages outside the United States. The company also distributes Aquafina bottled water, Quaker Oats’ milk-based drinks, Tropicana fruit juices, and Gatorade sports-themed beverages.
    The company’s total income for the quarter ended June 2022 was Rs 4,965.29 crore, up 75.08% from the previous quarter ended March 2022. Its quarter-on-quarter revenue growth was the highest in the past three years. In June 2022, the company’s shareholding pattern indicated a promoter stake of 63.9%, foreign institutional investor stake of 23.93%, public stake of 6.86%, and mutual fund stake of 4.38%. RJ Corporation Ltd. is the leading promoter with a 27.4% stake.
    Varun Beverages Ltd.’s top management includes Mr Ravi Kant Jaipuria, Mr Pradeep Sardana, Mr Kapil Agarwal, Mr Raj Pal Gandhi, Dr Ravi Gupta, Ms Rashmi Dhariwal, Ms Sita Khosla, Mr Varun Jaipuria, and Mr Rajinder Jeet Singh Bagga, among otheRs The auditors are Walker Chandiok &Co. LLP, APAS & Co. LLP, and APAS & Co.
    On 5 August 2022, Varun Beverages Ltd.’s share price on BSE closed at Rs 1024.70. The share price on NSE closed at Rs 1025.25. The 52-week high for Varun Beverages Ltd.’s share price was Rs 1047.80. The 52-week low for the company’s share price was Rs 480.44.
    As of July 2022, Sundaram Debt Oriented Hybrid Fund holds a 0.71% stake in Varun Beverages Ltd. Canara Robeco Conservative Hybrid Fund holds a 0.37% stake, while Nippon India Retirement Fund - IG holds a 0.32% stake.

    Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose

Registered Address

F-2/7 Okhla Industrial Area, Phase-I, New Delhi, New Delhi, 110020

Tel : 91-124-4643100/41706720-25
Email : complianceofficer:rjcorp.in
Website : https://www.varunbeverages.com
Registrar

KFin Techologies Ltd

AGM Date (Month) : Apr
Face Value Equity Shares : 5
Market Lot Equity Shares : 1
BSE Code : 540180
NSE Code : VBL
Book Closure Date (Month) : Mar
BSE Group : A
ISIN : INE200M01021

FAQ’s on Varun Beverages Ltd Shares

You can buy Varun Beverages Ltd shares through a brokerage firm. ICICIdirect is a registered broker through which you can place orders to buy Varun Beverages Ltd Share.

Company share prices and volatile and keep changing according to the market conditions. As of May 17, 2024 03:59 PM the closing price of Varun Beverages Ltd was Rs.1,515.50.

Market capitalization or market cap is determined by multiplying the current market price of a company�s shares with the total number of shares outstanding. As of May 17, 2024 03:59 PM, the market cap of Varun Beverages Ltd stood at Rs. 196,924.68.

The latest PE ratio of Varun Beverages Ltd as of May 17, 2024 03:59 PM is 90.48

The latest PB ratio of Varun Beverages Ltd as of May 17, 2024 03:59 PM is 0.04

The 52-week high of Varun Beverages Ltd share price is Rs. 1,561.95 while the 52-week low is Rs. 755.00

According to analyst recommendations, Varun Beverages Ltd Share has a "Buy" rating for the long term.

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