Overall Fundamental outlook

Business Operations:

Sector: Consumer Defensive
Industry: Beverages - Non-Alcoholic

Varun Beverages Limited, together with its subsidiaries, manufactures, bottles, sells, and distributes beverages and value-added products under the PepsiCo brands. It offers carbonated soft drinks under the Pepsi, Pepsi Zero, Mountain Dew, Mirinda, and 7UP brands, as well as Refreshhh, Coo-ee, and Jive brands; fruit pulp/juice-based drinks under the Tropicana, Tropicana Delight, Slice, and Nimbooz brands; club sodas under the Evervess and Dukes brands; and energy drinks under the Sting and Rockstar brands. The company also provides sports drinks under the Gatorade brand; carbonated juice-based drinks under the 7UP Nimbooz Masala Soda brand; ice-tea under the Lipton brand; packaged drinking water under the Aquafina and Aquavess brands, as well as Refreshhh and Aquaclear brand names; and snacks under the FritoLay, Cheetos, Doritos, Simba, and Kurkure brands. In addition, it offers energy drink under the Reboost Energy brand name; and value-added dairy-based beverages under the Cream bell brand name. The company operates in India, Sri Lanka, Nepal, Zambia, Morocco, Zimbabwe, RDC, Mozambique, South Africa, Lesotho, Eswatini, Namibiam, and Botswana. The company was incorporated in 1995 and is based in Gurugram, India.

Revenue projections:

Revenue projections for VBL
Revenue projections for VBL

Varun Beverages Limited is projected to see a decline in revenue compared to last year, which could lead to investor caution. A drop in earnings is often viewed as a negative signal for profitability, making it more difficult for the company to maintain investor confidence in its financial health.

Financial Ratios:

currentRatio 1.798000
forwardPE 45.542377
debtToEquity 11.554000
earningsGrowth 0.010000
revenueGrowth -0.025000
grossMargins 0.550390
operatingMargins 0.252200
trailingEps 5.740000
forwardEps 10.030000

Varun Beverages Limited's current ratio of 1.798 means the company has enough liquidity to meet its short-term debt obligations. With sufficient cash reserves and current assets, Varun Beverages Limited can comfortably cover its liabilities, reflecting a strong financial outlook.
Varun Beverages Limited's low Debt-to-Equity ratio means the company is not highly leveraged. This suggests a sound financial position with minimal reliance on debt, reducing risk and ensuring greater financial flexibility, making it a more stable option for investors.
Varun Beverages Limited's low earnings and revenue growth point to a possible reduction in profits. This trend suggests that the company may face difficulties in maintaining its profitability and could be a cause for concern among investors.
VBL's positive gross and operating margins suggest the company is performing profitably. These margins reflect efficient cost management and strong revenue generation, signaling healthy financial performance and operational effectiveness.
VBL's forward EPS exceeding its trailing EPS means that the company is expected to increase profitability in the current financial year. This reflects improved earnings potential, signaling that VBL is likely to outperform its previous year's financial performance.

Price projections:

Price projections for VBL
Price projections for VBL

Over time, Varun Beverages Limited's price projections have consistently been revised lower. This downward shift suggests analysts are becoming more cautious about the company's future, possibly due to emerging risks or challenges.

Recommendation changes over time:

Recommendations trend for VBL
Recommendations trend for VBL


Analysts have shown a buy bias for VBL, marking it as a favorable investment option. This could inspire investors to see VBL as a strong place to park their money, given the positive outlook and growth potential associated with the stock in recent evaluations.