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

VBL's revenue projections indicate a decrease from the prior year, which may make investors hesitant. A revenue decline could harm the company's bottom line, prompting investors to be more careful, as lower earnings often signal potential issues with profitability and future performance.

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

VBL's current ratio of 1.798 reflects its strong liquidity position. The company has enough cash reserves and current assets to service its short-term debt obligations, signaling that VBL is financially well-prepared to meet its liabilities without difficulty.
VBL's low Debt-to-Equity ratio means it is not excessively reliant on debt financing. This low leverage suggests lower financial risk and stronger equity control, positioning the company in a more stable financial situation and reducing vulnerability to debt-related issues.
VBL's low earnings and revenue growth point to a likely decrease in profits. This suggests that the company is facing financial difficulties and may struggle to maintain its current level of profitability.
VBL's positive gross and operating margins reflect strong financial performance. These metrics indicate that the company is efficiently managing its operations and generating healthy profits, contributing to a solid financial position.
Varun Beverages Limited's forward EPS exceeding its trailing EPS means the company is expected to be more profitable this year than last. This suggests an upward trend in earnings, with forecasts indicating that Varun Beverages Limited's financial performance will improve in the current financial year.

Price projections:

Price projections for VBL
Price projections for VBL

Price projections for VBL have been gradually reduced, reflecting growing uncertainty about the company's future performance. The downward revisions indicate analysts are lowering their expectations for VBL's market trajectory.

Recommendation changes over time:

Recommendations trend for VBL
Recommendations trend for VBL


VBL has recently received a buy bias from analysts, indicating that the stock is being perceived as a favorable investment. This positive sentiment could encourage investors to see VBL as a wise place to allocate their funds, potentially leading to increased interest in the company's stock.