Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by market expansion and strategic initiatives.
Basis of our Recommendation
Varun Beverages is experiencing robust revenue growth fueled by both domestic and international markets, supported by strategic acquisitions and a diversified portfolio. The company has shown strong volume growth and improved margins, although it faces some challenges with pricing power. Overall, the outlook remains positive with solid market perception and favorable conditions.
Why We Like This Stock
- Strong revenue growth driven by domestic and international markets
- Improved margins and positive earnings revisions
- Strategic acquisitions and diversified portfolio supporting future growth
Things To Watch Out For
- Challenges with pricing power
- Current performance impacted by external factors
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 16,043 | 20,008 | 21,685 | 25,403 | 29,266 |
| Profit Before Tax (Cr.) | 2,823 | 3,504 | 4,010 | 4,627 | 5,537 |
| PBT Margin | 17.6% | 17.5% | 18.5% | 18.2% | 18.9% |
| Net Profit (Cr.) | 2,174 | 2,740 | 3,067 | 3,611 | 4,321 |
| EPS | 6.3 | 8.0 | 9.0 | 10.7 | 12.8 |
Company Overview
Show Company Profile
Varun Beverages Limited, together with its subsidiaries, manufactures, bottles, sells, and distributes beverages under the PepsiCo brands in India, Sri Lanka, Nepal, Zambia, Morocco, Zimbabwe, the Democratic Republic of Congo, Mozambique, South Africa, Lesotho, Eswatini, Namibia, and Botswana. The company offers carbonated soft drinks under the Pepsi, Pepsi Zero, Mountain Dew, Mirinda, and Seven-Up brands, as well as the Refreshhh, Coo-ee, and Jive brands; fruit pulp and juice-based drinks under the Slice, Tropicana, Tropicana Delight, and Seven-Up Nimbooz brands; club sodas under the Evervess and Duke's brands; and energy drinks under the Sting, Adrenaline Rush, and Rockstar brands. It also provides sports drinks under the Gatorade brand; carbonated juice-based drinks under the Seven-Up Nimbooz Masala Soda brand; ice-tea under the Lipton brand; packaged drinking water under the Aquafina and Aquavess brands, as well as the Refreshhh and Aquaclear brands; and snacks under the FritoLay, Cheetos, Doritos, Simba, and Kurkure brands. In addition, the company offers energy drinks under the Reboost Energy brand; and value-added dairy-based beverages under the Cream Bell brand. Varun Beverages Limited was incorporated in 1995 and is based in Gurugram, India.