Varun Beverages Limited
Varun Beverages Limited Fundamental Analysis
Varun Beverages Limited (VBL.BO) shows weak financial fundamentals with a PE ratio of 45.26, profit margin of 14.00%, and ROE of 17.04%. The company generates $216.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VBL.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentVBL.BO demonstrates superior asset utilization.
Valuation Score
WeakVBL.BO trades at a premium to fair value.
Growth Score
ModerateVBL.BO shows steady but slowing expansion.
Financial Health Score
ExcellentVBL.BO maintains a strong and stable balance sheet.
Profitability Score
WeakVBL.BO struggles to sustain strong margins.
Key Financial Metrics
Is VBL.BO Expensive or Cheap?
P/E Ratio
VBL.BO trades at 45.26 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VBL.BO's PEG of 22.10 indicates potential overvaluation.
Price to Book
The market values Varun Beverages Limited at 7.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 25.64 times EBITDA. This signals the market has high growth expectations.
How Well Does VBL.BO Make Money?
Net Profit Margin
For every $100 in sales, Varun Beverages Limited keeps $14.00 as profit after all expenses.
Operating Margin
Core operations generate 24.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.04 in profit for every $100 of shareholder equity.
ROA
Varun Beverages Limited generates $11.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Varun Beverages Limited generates limited operating cash flow of $9.44B, signaling weaker underlying cash strength.
Free Cash Flow
Varun Beverages Limited generates weak or negative free cash flow of $-1.67B, restricting financial flexibility.
FCF Per Share
Each share generates $-0.49 in free cash annually.
FCF Yield
VBL.BO converts -0.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
45.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
22.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How VBL.BO Stacks Against Its Sector Peers
| Metric | VBL.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 45.26 | 22.75 | Worse (Expensive) |
| ROE | 17.04% | 1252.00% | Weak |
| Net Margin | 14.00% | -4261.00% (disorted) | Strong |
| Debt/Equity | 0.15 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.94 | 2.41 | Neutral |
| ROA | 11.88% | -153920.00% (disorted) | Strong |
VBL.BO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Varun Beverages Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility