Financials Varun Beverages Limited

Equities

VBL

INE200M01021

Non-Alcoholic Beverages

Market Closed - NSE India S.E. Other stock markets 05:13:54 31/05/2024 pm IST			5-day change	1st Jan Change
1,427 ^INR	-0.83%		-4.77%	+15.35%

14/05	Jefferies Adjusts Varun Beverages’ Price Target to INR1,690 From INR1,480, Keeps at Buy	MT
14/05	Varun Beverages Posts Rise in Fiscal Q1 Consolidated Net Profit	MT

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	18,53,913	-	-
Enterprise Value (EV) ¹	2,28,890	2,87,818	4,03,438	8,93,157	16,54,247	19,03,309	18,87,240	18,70,792
P/E ratio	42.1 x	80.4 x	55.4 x	57.4 x	78.2 x	70 x	56.1 x	44.4 x
Yield	0.35%	0.27%	0.28%	0.26%	0.1%	0.24%	0.3%	0.34%
Capitalization / Revenue	2.87 x	4.1 x	4.33 x	6.52 x	10 x	9.21 x	7.7 x	6.52 x
EV / Revenue	3.21 x	4.46 x	4.54 x	6.78 x	10.3 x	9.45 x	7.83 x	6.57 x
EV / EBITDA	15.8 x	23.9 x	24.4 x	32 x	45.8 x	41.3 x	34.1 x	28.2 x
EV / FCF	-21.3 x	63.6 x	102 x	-8,147 x	-189 x	466 x	75.1 x	56.2 x
FCF Yield	-4.69%	1.57%	0.98%	-0.01%	-0.53%	0.21%	1.33%	1.78%
Price to Book	6.15 x	7.5 x	9.43 x	16.8 x	23.2 x	20.3 x	15.5 x	12 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	1,427	1,427	1,427
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	2,01,367	2,40,898	2,84,558
EBITDA ¹	14,477	12,019	16,546	27,881	36,095	46,117	55,308	66,251
EBIT ¹	9,590	6,732	11,234	21,709	29,286	37,612	45,639	54,623
Operating Margin	13.45%	10.44%	12.63%	16.48%	18.26%	18.68%	18.95%	19.2%
Earnings before Tax (EBT) ¹	6,919	3,625	10,066	20,236	27,398	35,213	44,031	56,111
Net income ¹	4,690	3,290	6,941	14,974	20,559	26,463	33,037	41,769
Net margin	6.58%	5.1%	7.81%	11.37%	12.82%	13.14%	13.71%	14.68%
EPS ²	3.740	2.533	5.343	11.52	15.82	20.37	25.44	32.15
Free Cash Flow ¹	-10,736	4,523	3,966	-109.6	-8,733	4,085	25,115	33,284
FCF margin	-15.06%	7.01%	4.46%	-0.08%	-5.44%	2.03%	10.43%	11.7%
FCF Conversion (EBITDA)	-	37.63%	23.97%	-	-	8.86%	45.41%	50.24%
FCF Conversion (Net income)	-	137.48%	57.15%	-	-	15.44%	76.02%	79.68%
Dividend per Share ²	0.5550	0.5556	0.8333	1.750	1.250	3.495	4.293	4.904
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	43,173	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	9,888	19,633	11,092	5,640
EBIT ¹	3,562	783	3,997	10,975	5,458	-	-	-	7,109	2,523	8,012	-	-	9,679
Operating Margin	14.85%	4.51%	14.14%	22.15%	17.18%	-	-	-	18.37%	9.46%	18.56%	-	-	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	7,158	17,023	8,292	2,744
Net income ¹	2,401	164.9	2,542	7,874	3,810	747.5	4,291	9,938	5,011	1,320	5,373	13,145	6,339	2,007
Net margin	10.01%	0.95%	8.99%	15.89%	12%	3.38%	11.02%	17.71%	12.95%	4.95%	12.44%	17.79%	12.67%	4.84%
EPS ²	1.850	0.1267	1.957	6.060	2.935	0.5750	3.300	7.650	3.850	1.020	4.130	-	-	-
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	13/05/24	-	-	-

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	49,396	33,328	16,880
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	1.68 x	1.944 x	1.135 x	1.223 x	1.312 x	1.071 x	0.6026 x	0.2548 x
Free Cash Flow ¹	-10,736	4,523	3,966	-110	-8,733	4,085	25,115	33,284
ROE (net income / shareholders' equity)	17.6%	9.6%	18.3%	32.6%	34.2%	32%	30.8%	30.3%
ROA (Net income/ Total Assets)	-	3.91%	7.69%	14.1%	15.3%	16.2%	17%	18.2%
Assets ¹	-	84,235	90,201	1,06,001	1,34,027	1,63,352	1,94,334	2,29,502
Book Value Per Share ²	25.60	27.10	31.40	39.30	53.40	70.20	91.80	119.0
Cash Flow per Share ²	10.40	7.790	9.480	13.80	18.40	35.00	36.40	38.00
Capex ¹	23,788	5,597	8,348	18,010	32,640	21,175	17,145	19,382
Capex / Sales	33.36%	8.68%	9.39%	13.67%	20.35%	10.52%	7.12%	6.81%
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

1,427 INR

Average target price

1,573 INR

Spread / Average Target

+10.25%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Non-Alcoholic Beverages

	1st Jan change	Capi.
VARUN BEVERAGES LIMITED	+15.35%	22.21B
THE COCA-COLA COMPANY	+6.79%	271B
CELSIUS HOLDINGS, INC.	+46.70%	18.64B
ARCA CONTINENTAL, S.A.B. DE C.V.	-6.66%	17.21B
COCA-COLA HELLENIC	+14.88%	12.3B
SUNTORY BEVERAGE & FOOD LIMITED	+23.20%	11.3B
SWIRE PACIFIC LIMITED	+2.80%	11.1B
COCA-COLA CONSOLIDATED, INC.	+5.67%	9.2B
COCA-COLA IÇECEK ANONIM SIRKETI	+44.91%	6.01B
NATIONAL BEVERAGE CORP.	-7.08%	4.32B

Other Non-Alcoholic Beverages