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Varun Beverages

NSEI:VBL
Snowflake Description

High growth potential with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VBL
NSEI
₹165B
Market Cap
  1. Home
  2. IN
  3. Food, Beverage & Tobacco
Company description

Varun Beverages Limited operates as the franchisee of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo. The last earnings update was 24 days ago. More info.


Add to Portfolio Compare Print
  • Varun Beverages has significant price volatility in the past 3 months.
VBL Share Price and Events
7 Day Returns
7.5%
NSEI:VBL
6.9%
IN Beverage
5.7%
IN Market
1 Year Returns
2.1%
NSEI:VBL
-18.4%
IN Beverage
-26.5%
IN Market
VBL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Varun Beverages (VBL) 7.5% -22.3% -21.3% 2.1% 81.1% -
IN Beverage 6.9% -20.2% -19.8% -18.4% 38.6% -24.4%
IN Market 5.7% -15.5% -26.4% -26.5% -18.9% -8.7%
1 Year Return vs Industry and Market
  • VBL outperformed the Beverage industry which returned -18.4% over the past year.
  • VBL outperformed the Market in India which returned -26.5% over the past year.
Price Volatility
VBL
Industry
5yr Volatility vs Market

VBL Value

 Is Varun Beverages undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Varun Beverages to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Varun Beverages.

NSEI:VBL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.8%
Perpetual Growth Rate 10-Year IN Government Bond Rate 6.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:VBL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 6.5%
Equity Risk Premium S&P Global 7.9%
Beverage Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.572 (1 + (1- 35%) (20.68%))
0.764
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 6.48% + (0.8 * 7.85%)
12.76%

Discounted Cash Flow Calculation for NSEI:VBL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Varun Beverages is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NSEI:VBL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 12.76%)
2020 8,111.60 Analyst x5 7,193.69
2021 11,291.00 Analyst x6 8,880.19
2022 12,791.00 Analyst x2 8,921.53
2023 14,066.44 Est @ 9.97% 8,700.89
2024 15,321.72 Est @ 8.92% 8,404.89
2025 16,576.69 Est @ 8.19% 8,064.31
2026 17,849.37 Est @ 7.68% 7,700.83
2027 19,155.64 Est @ 7.32% 7,329.19
2028 20,509.33 Est @ 7.07% 6,959.14
2029 21,922.57 Est @ 6.89% 6,596.91
Present value of next 10 years cash flows ₹78,751.00
NSEI:VBL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹21,922.57 × (1 + 6.48%) ÷ (12.76% – 6.48%)
₹371,706.30
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹371,706.30 ÷ (1 + 12.76%)10
₹111,853.41
NSEI:VBL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹78,751.00 + ₹111,853.41
₹190,604.41
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹190,604.41 / 288.69
₹660.24
NSEI:VBL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:VBL represents 1.00988x of BSE:540180
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00988x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 660.24 x 1.00988
₹666.76
Value per share (INR) From above. ₹666.76
Current discount Discount to share price of ₹578.00
= -1 x (₹578.00 - ₹666.76) / ₹666.76
13.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Varun Beverages is available for.
Intrinsic value
13%
Share price is ₹578 vs Future cash flow value of ₹666.76
Current Discount Checks
For Varun Beverages to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Varun Beverages's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Varun Beverages's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Varun Beverages's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Varun Beverages's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:VBL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in INR ₹16.83
BSE:540180 Share Price ** BSE (2020-04-09) in INR ₹572.35
India Beverage Industry PE Ratio Median Figure of 14 Publicly-Listed Beverage Companies 8.9x
India Market PE Ratio Median Figure of 2,616 Publicly-Listed Companies 9.64x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Varun Beverages.

NSEI:VBL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:540180 Share Price ÷ EPS (both in INR)

= 572.35 ÷ 16.83

34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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.
Price based on expected Growth
Does Varun Beverages's expected growth come at a high price?
Raw Data
NSEI:VBL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 34x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
24.2%per year
Asia Beverage Industry PEG Ratio Median Figure of 46 Publicly-Listed Beverage Companies 1.81x
India Market PEG Ratio Median Figure of 399 Publicly-Listed Companies 0.85x

*Line of best fit is calculated by linear regression .

NSEI:VBL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 34x ÷ 24.2%

1.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Varun Beverages is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Varun Beverages's assets?
Raw Data
NSEI:VBL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in INR ₹115.29
BSE:540180 Share Price * BSE (2020-04-09) in INR ₹572.35
India Beverage Industry PB Ratio Median Figure of 19 Publicly-Listed Beverage Companies 0.89x
India Market PB Ratio Median Figure of 3,614 Publicly-Listed Companies 0.65x
NSEI:VBL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:540180 Share Price ÷ Book Value per Share (both in INR)

= 572.35 ÷ 115.29

4.96x

* Primary Listing of Varun Beverages.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Varun Beverages is overvalued based on assets compared to the IN Beverage industry average.
X
Value checks
We assess Varun Beverages's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Beverage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Beverage industry average (and greater than 0)? (1 check)
  5. Varun Beverages has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

VBL Future Performance

 How is Varun Beverages expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Varun Beverages expected to grow at an attractive rate?
  • Varun Beverages's earnings growth is expected to exceed the low risk savings rate of 6.5%.
Growth vs Market Checks
  • Varun Beverages's earnings growth is expected to exceed the India market average.
  • Varun Beverages's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:VBL Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:VBL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 24.2%
NSEI:VBL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 11.6%
Asia Beverage Industry Earnings Growth Rate Market Cap Weighted Average 17.1%
Asia Beverage Industry Revenue Growth Rate Market Cap Weighted Average 11.3%
India Market Earnings Growth Rate Market Cap Weighted Average 19.5%
India Market Revenue Growth Rate Market Cap Weighted Average 8.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:VBL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:VBL Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 95,889 16,988 9,545 2
2021-12-31 93,636 15,934 7,933 8
2020-12-31 79,686 13,290 5,016 9
2020-04-09
NSEI:VBL Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-12-31 71,296 13,052 4,690
2019-09-30 67,026 4,568
2019-06-30 61,274 12,634 4,183
2019-03-31 53,731 3,148
2018-12-31 51,053 9,998 2,928
2018-09-30 48,350 2,915
2018-06-30 46,578 2,821
2018-03-31 42,136 2,243
2017-12-31 40,080 6,198 2,102
2017-09-30 39,011 2,727
2017-06-30 38,351 2,501
2017-03-31 38,622 2,076

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Varun Beverages's earnings are expected to grow significantly at over 20% yearly.
  • Varun Beverages's revenue is expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:VBL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Varun Beverages Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:VBL Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 32.90 35.70 30.40 3.00
2021-12-31 24.92 28.10 16.60 6.00
2020-12-31 17.38 21.00 14.30 5.00
2020-04-09
NSEI:VBL Past Financials Data
Date (Data in INR Millions) EPS *
2019-12-31 16.83
2019-09-30 16.62
2019-06-30 15.27
2019-03-31 11.49
2018-12-31 10.69
2018-09-30 10.64
2018-06-30 10.30
2018-03-31 8.17
2017-12-31 7.68
2017-09-30 10.09
2017-06-30 9.86
2017-03-31 8.82

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Varun Beverages is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Varun Beverages's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Varun Beverages has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

VBL Past Performance

  How has Varun Beverages performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Varun Beverages's growth in the last year to its industry (Beverage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Varun Beverages has delivered over 20% year on year earnings growth in the past 5 years.
  • Varun Beverages's 1-year earnings growth exceeds its 5-year average (60.1% vs 41.6%)
  • Varun Beverages's earnings growth has exceeded the IN Beverage industry average in the past year (60.1% vs -5.9%).
Earnings and Revenue History
Varun Beverages's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Varun Beverages Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:VBL Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 71,295.78 4,689.75 10,126.71
2019-09-30 67,026.46 4,567.78 8,913.20
2019-06-30 61,274.19 4,183.21 8,102.86
2019-03-31 53,731.04 3,148.35 7,621.87
2018-12-31 51,052.55 2,928.41 7,424.44
2018-09-30 48,349.86 2,915.06 6,781.80
2018-06-30 46,577.87 2,821.12 6,495.26
2018-03-31 42,136.04 2,242.78 6,155.79
2017-12-31 40,079.67 2,101.54 5,869.56
2017-09-30 39,011.09 2,726.58 5,703.21
2017-06-30 38,351.14 2,500.80 5,586.20
2017-03-31 38,621.85 2,075.50 5,535.48
2016-12-31 38,611.83 423.76 5,364.16
2016-09-30 40,081.07 1,344.57 4,262.93
2016-06-30 36,919.93 1,294.63 4,827.50
2016-03-31 31,472.62 -224.04 4,143.65
2015-12-31 33,941.49 1,130.42 4,167.55
2014-12-31 25,024.07 -201.56 2,803.52
2013-12-31 21,151.49 -395.30 2,189.75

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Varun Beverages has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • 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).
X
Past performance checks
We assess Varun Beverages's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Beverage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Varun Beverages has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

VBL Health

 How is Varun Beverages's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Varun Beverages's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Varun Beverages's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Varun Beverages's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Varun Beverages's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Varun Beverages Company Filings, last reported 3 months ago.

NSEI:VBL Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 33,591.01 34,166.78 1,379.68
2019-09-30 25,048.63 32,533.20 1,523.24
2019-06-30 25,048.63 32,533.20 1,523.24
2019-03-31 20,062.72 28,156.64 429.36
2018-12-31 20,062.72 28,060.72 429.36
2018-09-30 21,056.15 19,002.78 2,773.42
2018-06-30 21,056.15 19,002.78 2,773.42
2018-03-31 17,679.96 26,580.52 649.46
2017-12-31 17,679.96 26,580.52 649.46
2017-09-30 18,529.54 17,664.20 1,623.18
2017-06-30 18,529.54 17,664.20 1,623.18
2017-03-31 18,939.25 16,246.61 657.03
2016-12-31 16,806.89 22,171.59 325.00
2016-09-30
2016-06-30 9,114.92 24,525.83 1,155.50
2016-03-31 6,742.77 20,773.45 580.74
2015-12-31 6,742.77 20,677.65 580.74
2014-12-31 3,430.78 24,153.15 3,363.89
2013-12-31 2,153.67 23,316.47 508.97
  • Varun Beverages's level of debt (101.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (701.9% vs 101.7% today).
  • Debt is well covered by operating cash flow (38.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).
X
Financial health checks
We assess Varun Beverages's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Varun Beverages has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

VBL Dividends

 What is Varun Beverages's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.44%
Current annual income from Varun Beverages dividends. Estimated to be 0.71% next year.
If you bought ₹2,000 of Varun Beverages shares you are expected to receive ₹9 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Varun Beverages's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.89%).
  • Varun Beverages's dividend is below the markets top 25% of dividend payers in India (3.79%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:VBL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
India Beverage Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 0.4%
India Market Average Dividend Yield Market Cap Weighted Average of 1419 Stocks 1.8%
India Minimum Threshold Dividend Yield 10th Percentile 0.4%
India Bottom 25% Dividend Yield 25th Percentile 0.9%
India Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:VBL Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 5.30 2.00
2021-12-31 4.45 6.00
2020-12-31 3.32 6.00
2020-04-09
NSEI:VBL Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2020-03-16 2.500 0.429
2019-11-04 2.500 0.334
2019-09-03 2.500 0.401
2019-08-01 2.500 0.395
2019-03-22 1.667 0.276
2019-02-20 1.667 0.309
2018-10-25 1.667 0.321
2018-08-09 1.667 0.322
2018-03-19 1.667 0.357
2018-02-16 1.667 0.394
2017-11-06 1.667 0.431
2017-08-09 1.667 0.483

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Varun Beverages has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Varun Beverages only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Varun Beverages's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (6.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.2x coverage).
X
Income/ dividend checks
We assess Varun Beverages's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Varun Beverages afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Varun Beverages has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

VBL Management

 What is the CEO of Varun Beverages's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kapil Agarwal
COMPENSATION ₹57,150,000
AGE 55
CEO Bio

Mr. Kapil Agarwal serves as the Chief Executive Officer of Varun Beverages Limited and also has been its Whole-time Director since 2012. He joined Varun Beverages Limited since April November 01, 2004. Mr. Agarwal heads the operations and management of Varun Beverages Limited. He has over two decades of experience in the field of Sales and marketing and has been with Varun Beverages Group since 1991. He serves as a Director of Devyani Food Industries Limited. Mr. Agarwal holds a Bachelor's Degree in Commerce from Lucknow University. He holds a Post Graduate Diploma in Business Management from the Institute of Management Technology, Ghaziabad.

CEO Compensation
  • Kapil's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Kapil's remuneration is about average for companies of similar size in India.
Management Team

Kapil Agarwal

TITLE
CEO & Whole-Time Director
COMPENSATION
₹57M
AGE
55

Vikas Bhatia

TITLE
Chief Financial Officer
COMPENSATION
₹8M
AGE
54
TENURE
0.7 yrs

Sudin Kumar Gaunker

TITLE
Chief Operating Officer
COMPENSATION
₹14M
AGE
47

Ravi Batra

TITLE
Chief Risk Officer
COMPENSATION
₹8M
AGE
47

Manmohan Paul

TITLE
Chief Operating Officer of Sales
COMPENSATION
₹12M
AGE
45

Sugato Palit

TITLE
Chief Human Resources Officer
COMPENSATION
₹11M
AGE
47

Varun Ravi Jaipuria

TITLE
Whole-Time Director
COMPENSATION
₹31M
AGE
32

Raj Gandhi

TITLE
Whole-Time Director
COMPENSATION
₹49M
AGE
62

Kamal Karnatak

TITLE
Senior Vice President of Information Technology
COMPENSATION
₹11M
AGE
46

Bhupinder Singh

TITLE
Senior Vice President
COMPENSATION
₹14M
AGE
54
Board of Directors Tenure

Average tenure and age of the Varun Beverages board of directors in years:

2.2
Average Tenure
59
Average Age
  • The average tenure for the Varun Beverages board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ravi Jaipuria

TITLE
Chairman
AGE
64

Kapil Agarwal

TITLE
CEO & Whole-Time Director
COMPENSATION
₹57M
AGE
55
TENURE
8.3 yrs

Varun Ravi Jaipuria

TITLE
Whole-Time Director
COMPENSATION
₹31M
AGE
32

Raj Gandhi

TITLE
Whole-Time Director
COMPENSATION
₹49M
AGE
62

Sita Khosla

TITLE
Non-Executive Independent Director
COMPENSATION
₹2M
AGE
55
TENURE
2.2 yrs

Rashmi Dhariwal

TITLE
Non-Executive Independent Director
COMPENSATION
₹3M
TENURE
2.1 yrs

Ravi Gupta

TITLE
Non-Executive Independent Director
COMPENSATION
₹2M
TENURE
2.1 yrs

Naresh Trehan

TITLE
Non-Executive & Independent Director
AGE
73
TENURE
4.3 yrs

Pradeep Sardana

TITLE
Non-Executive & Independent Director
COMPENSATION
₹800K
AGE
69
TENURE
4.1 yrs

Rajinder Jeet Bagga

TITLE
Whole-Time Director
COMPENSATION
₹18M
AGE
56
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • Varun Beverages individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
31. Mar 20 Buy Madhusudan Parikh Individual 06. Mar 20 20. Mar 20 2,000 ₹761.68 ₹1,323,663
24. Mar 20 Sell Vivek Gupta Individual 17. Mar 20 17. Mar 20 -200 ₹713.93 ₹-142,786
24. Mar 20 Sell Vivek Gupta Individual 20. Mar 20 20. Mar 20 -5,212 ₹651.15 ₹-3,393,794
16. Mar 20 Sell Vivek Gupta Individual 13. Mar 20 13. Mar 20 -8,521 ₹775.90 ₹-6,611,447
24. Feb 20 Sell Jaipuria Group Company 24. Feb 20 24. Feb 20 -1,100,000 ₹810.00 ₹-891,000,285
25. Sep 19 Sell Jaipuria Group Company 25. Sep 19 25. Sep 19 -2,700,000 ₹630.01 ₹-1,701,022,471
25. Sep 19 Sell Ravi Jaipuria Individual 25. Sep 19 25. Sep 19 -1,300,000 ₹630.06 ₹-819,081,567
X
Management checks
We assess Varun Beverages's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Varun Beverages has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

VBL News

Simply Wall St News

Have Insiders Been Buying Varun Beverages Limited (NSE:VBL) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Varun Beverages Varun Beverages Insider Transactions Over The Last Year While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading. … While Varun Beverages insiders bought shares last year, they didn't sell. … NSEI:VBL Recent Insider Trading, August 27th 2019 Insider Ownership of Varun Beverages For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

Here's Why We Think Varun Beverages (NSE:VBL) Is Well Worth Watching

See our latest analysis for Varun Beverages Varun Beverages's Earnings Per Share Are Growing. … And the insider buying isn't the only sign of alignment between shareholders and the board, since Varun Beverages insiders own more than a third of the company. … Given my belief that share price follows earnings per share you can easily imagine how I feel about Varun Beverages's strong EPS growth.

Simply Wall St -

Why Varun Beverages Limited (NSE:VBL) Looks Like A Quality Company

Check out our latest analysis for Varun Beverages How Do You Calculate Return On Equity? … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Varun Beverages: 16% = ₹3.1b ÷ ₹20b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Combining Varun Beverages's Debt And Its 16% Return On Equity Varun Beverages does use a significant amount of debt to increase returns.

Simply Wall St -

Should We Worry About Varun Beverages Limited's (NSE:VBL) P/E Ratio?

See our latest analysis for Varun Beverages How Do I Calculate Varun Beverages's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Varun Beverages: P/E of 54.12 = ₹932.65 ÷ ₹17.23 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … How Does Varun Beverages's P/E Ratio Compare To Its Peers?

Simply Wall St -

Who Has Been Buying Varun Beverages Limited (NSE:VBL) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Varun Beverages Limited (NSE:VBL). … Insiders at Varun Beverages Have Bought Stock Recently It's good to see that Varun Beverages insiders have made notable investments in the company's shares. … Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Varun Beverages.

Simply Wall St -

What Do You Get For Owning Varun Beverages Limited (NSE:VBL)?

You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently Varun Beverages is able to use capital to create earnings will help us understand your potential return. … Varun Beverages's Return On Capital Employed

Simply Wall St -

What You Must Know About Varun Beverages Limited's (NSE:VBL) Return on Equity

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … With an ROE of 12.83%, Varun Beverages Limited (NSE:VBL) returned in-line to its own industry which delivered 15.67% over the past year. … View our latest analysis for Varun Beverages

Simply Wall St -

What Should You Know About Varun Beverages Limited's (NSE:VBL) Profit Growth?

Varun Beverages Limited (NSE:VBL) to … earnings growth of 25.64% annualised … it's important to take a step back

Simply Wall St -

Is Varun Beverages Limited's (NSE:VBL) Balance Sheet Strong Enough To Weather A Storm?

Investors are always looking for growth in small-cap stocks like Varun Beverages Limited (NSE:VBL), with a market cap of ₹135.36b. … However, an important fact which most ignore is: how financially healthy is the business? … since poor capital management may bring about bankruptcies,

Simply Wall St -

Is Varun Beverages Limited (NSE:VBL) Worth ₹735 Based On Intrinsic Value?

In this article I am going to calculate the intrinsic value of Varun Beverages Limited (NSE:VBL). … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

VBL Company Info

Description

Varun Beverages Limited operates as the franchisee of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo. The company produces, bottles, and distributes a range of CSDs under the Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Seven-Up Nimbooz Masala Soda, Evervess Soda, Duke’s Soda, and Sting brands. It also produces and distributes NCBs under the brands of Tropicana Slice, Tropicana Frutz, Seven-Up Nimbooz, Gatorade, and Quaker Oat Milk, as well as packaged drinking water under the brand Aquafina. In addition, the company holds the franchise for Ole brand of PepsiCo products in Sri Lanka. It sells its products to retail outlets directly and through distributors in India, as well as territories of Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe. The company was incorporated in 1995 and is based in Gurugram, India. Varun Beverages Limited is a subsidiary of RJ Corp Limited.

Details
Name: Varun Beverages Limited
VBL
Exchange: NSEI
Founded: 1995
₹165,230,988,892
288,688,720
Website: http://www.varunpepsi.com
Address: Varun Beverages Limited
RJ Corp House,
Plot No. 31,
Gurugram,
Haryana, 122002,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 540180 Equity Shares Mumbai Stock Exchange IN INR 08. Nov 2016
NSEI VBL Equity Shares National Stock Exchange of India IN INR 08. Nov 2016
Number of employees
Current staff
Staff numbers
11,000
Varun Beverages employees.
Industry
Soft Drinks
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 14:05
End of day share price update: 2020/04/09 00:00
Last estimates confirmation: 2020/04/08
Last earnings filing: 2020/03/16
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.