Varun Beverages Ltd
Ticker: VBL
Decent
68/100
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Investing Reference
Price
469.65
Market Cap
158835.10
Debt/Equity
0.1688
ROE %
21.781
PB
9.4886
Promoter %
59.439
Pledge %
0.023
1Y Rev Growth %
24.854
5Y Rev Growth %
18.653
NP Margin %
12.890
NP Margin 5Y Avg %
9.823
Trading Reference
1M Return %
9.045
6M Return %
-10.449
1Y Return %
-21.430
% Away 52W High
41.297
% Away 52W Low
11.941
Daily Volume
9048607
Investment Verdict
Hold
Score 63/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 38/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Varun Beverages Ltd shows strong growth potential in the beverage sector, driven by expanding distribution and product diversification.
✅ Positives
- Robust revenue growth over the past few years
- Strong market position in the beverage industry
- Expanding distribution network across India
⚠️ Negatives
- High competition in the beverage market
- Rising input costs impacting margins
- Dependence on carbonated drinks sales
Verdict
Positive outlook with growth potential.
Recommendation: Consider buying for long-term gains.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 31/10/2025
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Business Overview
Varun Beverages Ltd is a leading manufacturer and distributor of carbonated and non-carbonated beverages in India, primarily known for its association with the PepsiCo brand. Catering to a diverse consumer base, the company plays a crucial role in the beverage industry, ensuring quality and accessibility. Varun Beverages is committed to sustainable practices and innovation, making it a trusted choice for consumers. With a strong distribution network and a focus on expanding its product portfolio, it stands out as a key player in the market.
- Leading PepsiCo bottler in India
- Wide range of beverage offerings
- Strong distribution network
- Commitment to sustainability
- Focus on innovation and quality
Investment Thesis
Varun Beverages Ltd stands out with a strong promoter group known for credibility and operational excellence. The company's focus on digital services presents a significant growth runway, enhancing efficiency and customer engagement. Additionally, its attractive valuation compared to peers makes it a compelling investment opportunity for retail investors seeking long-term gains.
- Strong promoter group with a proven track record.
- Significant growth potential in digital services.
- Attractive valuation relative to industry peers.
- Robust operational performance and market presence.
- Commitment to sustainability and innovation.
Opportunity vs Risk
Opportunities
- Growing demand for carbonated drinks
- Expansion into new markets
- Strong distribution network
- Rising health-conscious beverage options
Risks ⚠️
- Intense competition in beverage sector
- Fluctuating raw material prices
- Regulatory changes affecting operations
- Economic downturn impacting consumer spending
Peer Perspective
Varun Beverages Ltd trades at a slight premium to peers like Coca-Cola India and Parle Agro, reflecting strong growth prospects. A sustained improvement in margins could trigger a positive rerating in the competitive beverage sector.
Future Outlook
Varun Beverages Ltd is well-positioned for growth, driven by increasing demand and strategic expansion. However, successful execution and cost control will be crucial to fully capitalize on these opportunities.
📊 Stock Investment Checklist (100 Points)
Varun Beverages Ltd • Updated: 2025-09-18 01:32:53
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10BusinessHighThe beverage sector is growing, but competition is intense.
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10GrowthHighConsistent revenue growth, but profit margins are under pressure.
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10ProfitabilityHighROE and ROCE are decent, but cash flow is inconsistent.
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8ValuationHighValuation metrics are slightly above peers.
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7BalanceHighModerate debt levels, but liquidity is adequate.
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6GovernanceGoodPromoter holding is strong, but some pledging exists.
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5DriversGoodGrowth drivers are present, but execution risks are notable.
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4TechnicalsGoodMarket sentiment is mixed, with low liquidity.
Final Score & Verdict
Score 68 / 100
• Decent
Varun Beverages shows potential for growth, but faces challenges in profitability and valuation compared to peers.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 80/100
- Profitability: 70/100
- Governance: 65/100
- Market Confidence: 75/100