ScoreWhy is Varun Beverages Ltd ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 20.57%
- Healthy long term growth as Net Sales has grown by an annual rate of 22.92% and Operating profit at 31.45%
- Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.33 times
2
Positive results in Dec 24
- PAT(Q) At Rs 185.15 cr has Grown at 40.3 %
- DEBT-EQUITY RATIO(HY) Lowest at 0.17 times
- NET SALES(Q) At Rs 3,688.79 cr has Grown at 38.28 %
3
Stock is technically in a Mildly Bearish range
- A key technical factor - KST has been Bearish since 26 Mar 2025
4
With ROE of 15.6, it has a Very Expensive valuation with a 11 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -4.33%, its profits have risen by 26.2% ; the PEG ratio of the company is 3.3
5
High Institutional Holdings at 32.28%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.54% over the previous quarter.
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Varun Beverages should be less than 10%
- Overall Portfolio exposure to Breweries & Distilleries should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Breweries & Distilleries)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Varun Beverages for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Varun Beverages
-4.59%
-0.12
36.56%
SENSEX
0.45%
0.03
14.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
22.92%
EBIT Growth (5y)
31.45%
EBIT to Interest (avg)
7.88
Debt to EBITDA (avg)
1.47
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.28
Tax Ratio
23.27%
Dividend Payout Ratio
15.80%
Pledged Shares
0.04%
Institutional Holding
32.28%
ROCE (avg)
20.46%
ROE (avg)
20.57%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
70
Industry P/E
73
Price to Book Value
11.00
EV to EBIT
48.63
EV to EBITDA
38.85
EV to Capital Employed
10.78
EV to Sales
9.15
PEG Ratio
3.32
Dividend Yield
0.18%
ROCE (Latest)
22.16%
ROE (Latest)
15.62%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
PAT(Q)
At Rs 185.15 cr has Grown at 40.3 %
DEBT-EQUITY RATIO(HY)
Lowest at 0.17 times
NET SALES(Q)
At Rs 3,688.79 cr has Grown at 38.28 %
-7What is not working for the Company
INTEREST(9M)
At Rs 356.71 cr has Grown at 55.19 %
ROCE(HY)
Lowest at 19.98 %
OPERATING PROFIT TO INTEREST (Q)
Lowest at 5.32 times
Loading Valuation Snapshot...
Here's what is working for Varun Beverages
Profit After Tax (PAT) - Quarterly
At Rs 185.15 cr has Grown at 40.3 %
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 3,688.79 cr has Grown at 38.28 %
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.17 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Varun Beverages
Interest - Nine Monthly
At Rs 356.71 cr has Grown at 55.19 %
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 5.32 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Non Operating Income - Quarterly
Highest at Rs 44.64 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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