ScoreWhy is Varun Beverages Ltd ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 22.82%
- Healthy long term growth as Net Sales has grown by an annual rate of 27.27% and Operating profit at 44.29%
- Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.88 times
2
Flat results in Sep 25
- ROCE(HY) Lowest at 19.85%
3
With ROE of 15.5, it has a Very Expensive valuation with a 8.8 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -22.34%, its profits have risen by 16.9% ; the PEG ratio of the company is 4.4
4
High Institutional Holdings at 33.72%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.34% over the previous quarter.
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.37% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.34% returns
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
27.44%
EBIT Growth (5y)
41.61%
EBIT to Interest (avg)
11.93
Debt to EBITDA (avg)
1.13
Net Debt to Equity (avg)
0.03
Sales to Capital Employed (avg)
1.27
Tax Ratio
23.63%
Dividend Payout Ratio
13.03%
Pledged Shares
0.04%
Institutional Holding
33.87%
ROCE (avg)
22.35%
ROE (avg)
21.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
45
Industry P/E
49
Price to Book Value
6.98
EV to EBIT
35.77
EV to EBITDA
27.15
EV to Capital Employed
6.83
EV to Sales
6.32
PEG Ratio
2.64
Dividend Yield
0.37%
ROCE (Latest)
19.08%
ROE (Latest)
15.51%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
PBT LESS OI(Q)
At Rs 259.78 cr has Grown at 24.00%
PAT(Q)
At Rs 251.79 cr has Grown at 36.0%
-4What is not working for the Company
ROCE(HY)
Lowest at 18.92%
DEBTORS TURNOVER RATIO(HY)
Lowest at 17.79 times
Loading Valuation Snapshot...
Here's what is working for Varun Beverages
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 259.78 cr has Grown at 24.00%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 251.79 cr has Grown at 36.0%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Varun Beverages
Debtors Turnover Ratio- Half Yearly
Lowest at 17.79 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
