Varun Beverages Ltd. (IN:VBL)
:VBL
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Varun Beverages Ltd.
(VBL)
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Rating:60Neutral
Price Target:
₹403.00
▼(-20.96% Downside)
Action:DowngradedDate:02/05/26
The score is supported by strong fundamental growth and improved leverage, but is held back by weak technicals (downtrend with bearish momentum) and a rich valuation (high P/E and low yield).
Positive Factors
PepsiCo franchise/brand strength
Long-term franchise rights with PepsiCo give Varun Beverages durable access to leading global beverage brands, established formulations and marketing, and scale benefits across manufacturing and distribution. This franchise model lowers customer-acquisition risk and supports steady volume demand and route-to-market advantages over years.
Negative Factors
Weak free cash flow conversion
FCF lagging net income over multiple years shows earnings are not fully converting to cash, likely due to capex and working-capital needs. This constrains sustained shareholder returns and limits buffer for commodity or demand shocks, raising execution risk over several quarters as investments continue.
Read all positive and negative factors
Positive Factors
Negative Factors
PepsiCo franchise/brand strength
Long-term franchise rights with PepsiCo give Varun Beverages durable access to leading global beverage brands, established formulations and marketing, and scale benefits across manufacturing and distribution. This franchise model lowers customer-acquisition risk and supports steady volume demand and route-to-market advantages over years.
Read all positive factors
Varun Beverages Ltd. (VBL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.46T
Dividend Yield0.31%
Average Volume (3M)496.51K
Price to Earnings (P/E)54.6
Beta (1Y)1.26
Revenue Growth11.50%
EPS Growth12.21%
CountryIN
Employees11,041
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)0.72
Shares Outstanding3,382,094,500
10 Day Avg. Volume186,454
30 Day Avg. Volume496,512
Financial Highlights & Ratios
PEG Ratio4.21
Price to Book (P/B)8.46
Price to Sales (P/S)7.64
P/FCF Ratio233.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹511.67Price Target Upside0.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)9.93
Revenue Forecast (FY)₹246.91B
Varun Beverages Ltd. Business Overview & Revenue Model
Company Description
Varun Beverages Limited, together with its subsidiaries, operates as the franchisee of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) sold under trademarks owned by PepsiCo. The company manufactures, bottles, distributes, and se...
How the Company Makes Money
VBL primarily makes money by producing and selling ready-to-drink beverages for PepsiCo brands in territories where it holds franchise/bottling rights. Its core revenue stream is the sale of finished beverage products—typically split across (1) ca...
Varun Beverages Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 216.85B | 200.08B | 160.43B | 131.73B | 88.23B |
| Gross Profit | 85.53B | 111.03B | 86.38B | 69.12B | 47.89B |
| EBITDA | 54.02B | 48.31B | 37.47B | 28.27B | 16.62B |
| Net Income | 30.36B | 25.95B | 20.56B | 14.97B | 6.94B |
Balance Sheet | |||||
| Total Assets | 255.65B | 231.44B | 151.87B | 116.18B | 95.82B |
| Cash, Cash Equivalents and Short-Term Investments | 19.98B | 24.50B | 4.57B | 2.85B | 1.51B |
| Total Debt | 29.08B | 28.26B | 54.31B | 38.84B | 33.87B |
| Total Liabilities | 58.24B | 64.04B | 81.03B | 64.03B | 53.85B |
| Stockholders Equity | 195.79B | 166.10B | 69.36B | 51.02B | 40.80B |
Cash Flow | |||||
| Free Cash Flow | 7.08B | -3.98B | -8.73B | -109.63M | 2.89B |
| Operating Cash Flow | 34.48B | 33.81B | 23.91B | 17.90B | 12.31B |
| Investing Cash Flow | -27.81B | -43.17B | -32.90B | -17.05B | -10.11B |
| Financing Cash Flow | -11.59B | 29.54B | 9.85B | -179.42M | -1.78B |
Varun Beverages Ltd. Technical Analysis
Neutral
509.85
Price Trends
432.93
Negative
455.52
Negative
464.64
Negative
Market Momentum
-3.30
Negative
56.33
Neutral
91.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VBL, the sentiment is Neutral. The current price of 509.85 is above the 20-day moving average (MA) of 404.96, above the 50-day MA of 432.93, and above the 200-day MA of 464.64, indicating a neutral trend. The MACD of -3.30 indicates Negative momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 91.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:VBL.
Varun Beverages Ltd. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹1.08T | 76.67 | ― | 0.70% | 15.34% | 14.67% | |
69 Neutral | ₹990.55B | 54.57 | ― | 1.42% | 22.56% | 4.73% | |
68 Neutral | ₹2.41T | 62.28 | ― | 0.97% | 6.25% | -8.80% | |
67 Neutral | ₹1.34T | 53.41 | ― | 1.24% | 7.21% | 8.68% | |
66 Neutral | ₹774.04B | 39.88 | ― | 1.62% | 2.68% | 1.07% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | ₹1.46T | 54.56 | ― | 0.31% | 11.50% | 12.21% |
* Consumer Defensive Sector Average
IN:VBL
Varun Beverages Ltd.
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-118.45
-21.58%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.