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 last year's performance, which could lead to investor caution. A fall in revenue is likely to negatively impact the company's profitability, causing concern for shareholders who may view this as a signal of declining financial health.

Financial Ratios:

currentRatio 1.73800
forwardPE 47.30186
debtToEquity 16.88400
earningsGrowth 0.36100
revenueGrowth 0.38300
grossMargins 0.55493
operatingMargins 0.14189
trailingEps 7.97000
forwardEps 10.03000

Varun Beverages Limited's current ratio being 1.738 suggests that it has more than enough liquidity to cover short-term debt obligations. The company's cash reserves and current assets are sufficient to meet immediate liabilities, signaling solid financial health and minimal risk.
VBL's low Debt-to-Equity ratio demonstrates that the company maintains a healthy balance between equity and debt, avoiding over-leverage. This suggests a low-risk financial profile, giving investors confidence in the company's stability and ability to manage its financial commitments.
VBL's positive earnings and revenue growth indicate that the company is expected to continue expanding its business. These trends reflect strong financial health, with increasing profits and sales suggesting sustained growth and success for VBL.
Varun Beverages Limited's forward EPS is higher than its trailing EPS, suggesting the company is expected to improve its profitability this financial year. This reflects growing confidence in Varun Beverages Limited's earnings potential, with forecasts indicating better financial performance than in the prior year.

Price projections:

Price projections for VBL
Price projections for VBL

Price projections for VBL have been revised downward over time, signaling decreasing optimism about the company's outlook. Analysts appear to be adjusting their expectations as concerns about future performance grow.

Recommendation changes over time:

Recommendations trend for VBL
Recommendations trend for VBL


Analysts' buy bias for VBL signals that the stock is considered a favorable investment. This outlook might prompt investors to allocate funds to VBL, seeing it as a solid and profitable choice to park their money and potentially benefit from the company's long-term growth.