Financials Varun Beverages Limited

Equities

VBL

INE200M01021

Non-Alcoholic Beverages

Market Closed - NSE India S.E. Other stock markets 05:13:50 03/05/2024 pm IST			5-day change	1st Jan Change
1,507 ^INR	-0.67%		+3.22%	+21.81%

15/04	Varun Beverages Starts Production of Carbonated Soft Drinks, Energy Drinks at Gorakhpur, India Facility	MT
13/04	Varun Beverages Limited Starts Commercial Production of Carbonated Soft Drilling & Energy Drilling & Energy Drills At Gorakhpur, Uttar Pradesh	CI

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	2,04,565	2,64,453	3,84,663	8,59,062	16,06,902	19,57,731	-	-
Enterprise Value (EV) ¹	2,28,890	2,87,818	4,03,438	8,93,157	16,54,247	19,94,850	19,78,090	19,52,824
P/E ratio	42.1 x	80.4 x	55.4 x	57.4 x	78.2 x	78.3 x	62.5 x	51.7 x
Yield	0.35%	0.27%	0.28%	0.26%	0.1%	0.23%	0.28%	0.32%
Capitalization / Revenue	2.87 x	4.1 x	4.33 x	6.52 x	10 x	9.86 x	8.3 x	7.11 x
EV / Revenue	3.21 x	4.46 x	4.54 x	6.78 x	10.3 x	10.1 x	8.39 x	7.09 x
EV / EBITDA	15.8 x	23.9 x	24.4 x	32 x	45.8 x	44.7 x	36.9 x	30.8 x
EV / FCF	-21.3 x	63.6 x	102 x	-8,147 x	-189 x	151 x	81.8 x	60.7 x
FCF Yield	-4.69%	1.57%	0.98%	-0.01%	-0.53%	0.66%	1.22%	1.65%
Price to Book	6.15 x	7.5 x	9.43 x	16.8 x	23.2 x	21.7 x	16.6 x	12.6 x
Nbr of stocks (in thousands)	12,99,099	12,99,099	12,99,099	12,99,099	12,99,136	12,99,350	-	-
Reference price ²	157.5	203.6	296.1	661.3	1,237	1,507	1,507	1,507
Announcement Date	07/02/20	16/02/21	03/02/22	06/02/23	05/02/24	-	-	-

¹INR in Million²INR

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	71,296	64,501	88,912	1,31,731	1,60,426	1,98,457	2,35,763	2,75,406
EBITDA ¹	14,477	12,019	16,546	27,881	36,095	44,612	53,669	63,488
EBIT ¹	9,590	6,732	11,234	21,709	29,286	36,372	44,459	53,319
Operating Margin	13.45%	10.44%	12.63%	16.48%	18.26%	18.33%	18.86%	19.36%
Earnings before Tax (EBT) ¹	6,919	3,625	10,066	20,236	27,398	33,592	42,270	54,378
Net income ¹	4,690	3,290	6,941	14,974	20,559	25,152	31,604	39,118
Net margin	6.58%	5.1%	7.81%	11.37%	12.82%	12.67%	13.4%	14.2%
EPS ²	3.740	2.533	5.343	11.52	15.82	19.25	24.12	29.13
Free Cash Flow ¹	-10,736	4,523	3,966	-109.6	-8,733	13,199	24,187	32,151
FCF margin	-15.06%	7.01%	4.46%	-0.08%	-5.44%	6.65%	10.26%	11.67%
FCF Conversion (EBITDA)	-	37.63%	23.97%	-	-	29.59%	45.07%	50.64%
FCF Conversion (Net income)	-	137.48%	57.15%	-	-	52.48%	76.53%	82.19%
Dividend per Share ²	0.5550	0.5556	0.8333	1.750	1.250	3.431	4.219	4.847
Announcement Date	07/02/20	16/02/21	03/02/22	06/02/23	05/02/24	-	-	-

¹INR in Million²INR

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q3	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4
Net sales ¹	23,982	17,352	28,275	49,548	31,766	22,142	38,930	56,114	38,705	26,677	43,618	73,885	50,040	41,437
EBITDA ¹	4,947	2,076	5,310	12,506	6,990	3,075	7,980	15,108	8,817	4,183	9,083	19,633	11,092	5,640
EBIT ¹	3,562	783	3,997	10,975	5,458	-	-	-	7,109	2,523	7,234	-	-	9,679
Operating Margin	14.85%	4.51%	14.14%	22.15%	17.18%	-	-	-	18.37%	9.46%	16.58%	-	-	23.36%
Earnings before Tax (EBT) ¹	3,504	418.6	3,612	10,616	5,112	896	5,734	13,111	6,669	1,878	6,537	-	-	-
Net income ¹	2,401	164.9	2,542	7,874	3,810	747.5	4,291	9,938	5,011	1,320	5,147	-	-	-
Net margin	10.01%	0.95%	8.99%	15.89%	12%	3.38%	11.02%	17.71%	12.95%	4.95%	11.8%	-	-	-
EPS ²	1.850	0.1267	1.957	6.060	2.935	0.5750	3.300	7.650	3.850	1.020	4.940	-	-	-
Dividend per Share ²	-	-	-	-	-	-	-	-	-	-	-	-	3.049	-
Announcement Date	29/10/21	03/02/22	28/04/22	01/08/22	01/11/22	06/02/23	02/05/23	03/08/23	06/11/23	05/02/24	-	-	-	-

¹INR in Million²INR

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	24,325	23,364	18,775	34,095	47,345	37,120	20,360	-
Net Cash position ¹	-	-	-	-	-	-	-	4,906
Leverage (Debt/EBITDA)	1.68 x	1.944 x	1.135 x	1.223 x	1.312 x	0.8321 x	0.3794 x	-
Free Cash Flow ¹	-10,736	4,523	3,966	-110	-8,733	13,199	24,187	32,151
ROE (net income / shareholders' equity)	17.6%	9.6%	18.3%	32.6%	34.2%	31.5%	30.4%	30.5%
ROA (Net income/ Total Assets)	-	3.91%	7.69%	14.1%	15.3%	15.2%	16.6%	18.3%
Assets ¹	-	84,235	90,201	1,06,001	1,34,027	1,65,475	1,90,386	2,13,762
Book Value Per Share ²	25.60	27.10	31.40	39.30	53.40	69.30	91.00	120.0
Cash Flow per Share ²	10.40	7.790	9.480	13.80	18.40	34.50	36.50	38.20
Capex ¹	23,788	5,597	8,348	18,010	32,640	14,899	15,301	18,247
Capex / Sales	33.36%	8.68%	9.39%	13.67%	20.35%	7.51%	6.49%	6.63%
Announcement Date	07/02/20	16/02/21	03/02/22	06/02/23	05/02/24	-	-	-

¹INR in Million²INR

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Varun Beverages Limited

Trading Rating

Investor Rating

ESG Refinitiv

B-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

1,507 INR

Average target price

1,514 INR

Spread / Average Target

+0.49%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Non-Alcoholic Beverages

	1st Jan change	Capi.
VARUN BEVERAGES LIMITED	+21.81%	23.48B
THE COCA-COLA COMPANY	+5.51%	268B
KEURIG DR PEPPER INC.	+1.53%	45.86B
CELSIUS HOLDINGS, INC.	+39.34%	17.71B
ARCA CONTINENTAL, S.A.B. DE C.V.	-9.55%	16.71B
COCA-COLA HELLENIC	+13.41%	11.99B
SWIRE PACIFIC LIMITED	+2.50%	11.3B
SUNTORY BEVERAGE & FOOD LIMITED	+10.37%	10.37B
COCA-COLA CONSOLIDATED, INC.	-8.08%	8B
COCA-COLA IÇECEK ANONIM SIRKETI	+35.39%	5.6B

Other Non-Alcoholic Beverages