Overall Fundamental outlook

Business Operations:

Sector: Consumer Defensive
Industry: Beverages - Non-Alcoholic

Varun Beverages Limited, together with its subsidiaries, manufactures, bottles, sells, and distributes beverages and value-added products under the PepsiCo brands. It offers carbonated soft drinks under the Pepsi, Pepsi Zero, Mountain Dew, Mirinda, and 7UP brands, as well as Refreshhh, Coo-ee, and Jive brands; fruit pulp/juice-based drinks under the Tropicana, Tropicana Delight, Slice, and Nimbooz brands; club sodas under the Evervess and Dukes brands; and energy drinks under the Sting and Rockstar brands. The company also provides sports drinks under the Gatorade brand; carbonated juice-based drinks under the 7UP Nimbooz Masala Soda brand; ice-tea under the Lipton brand; packaged drinking water under the Aquafina and Aquavess brands, as well as Refreshhh and Aquaclear brand names; and snacks under the FritoLay, Cheetos, Doritos, Simba, and Kurkure brands. In addition, it offers energy drink under the Reboost Energy brand name; and value-added dairy-based beverages under the Cream bell brand name. The company operates in India, Sri Lanka, Nepal, Zambia, Morocco, Zimbabwe, RDC, Mozambique, South Africa, Lesotho, Eswatini, Namibiam, and Botswana. The company was incorporated in 1995 and is based in Gurugram, India.

Revenue projections:

Revenue projections for VBL
Revenue projections for VBL

Investors are expected to be cautious with VBL, as its revenues are projected to fall compared to last year. A decline in revenue often results in a negative impact on profitability, prompting concerns about the company's financial stability and making investors more conservative in their approach.

Financial Ratios:

currentRatio 1.798000
forwardPE 45.542377
debtToEquity 11.554000
earningsGrowth 0.010000
revenueGrowth -0.025000
grossMargins 0.550390
operatingMargins 0.252200
trailingEps 5.740000
forwardEps 10.030000

A current ratio of 1.798 for VBL implies that the company has ample liquidity to meet its short-term debts. VBL's cash reserves and current assets should easily cover these obligations, highlighting its financial stability and ability to manage short-term liabilities.
VBL's low Debt-to-Equity ratio means the company is not highly leveraged. This suggests a sound financial position with minimal reliance on debt, reducing risk and ensuring greater financial flexibility, making it a more stable option for investors.
VBL's low earnings and revenue growth suggest shrinking profits. This negative trend could indicate that the company is struggling to maintain its financial performance and may face challenges ahead.
Varun Beverages Limited's positive gross and operating margins suggest that the company is operating profitably. These strong margins indicate effective cost management and revenue generation, contributing to a solid financial foundation.
With a forward EPS greater than its trailing EPS, VBL is expected to see higher profitability this year. The forecasted increase in earnings reflects optimism about the company's financial growth and potential for improved performance over the prior year.

Price projections:

Price projections for VBL
Price projections for VBL

Over time, Varun Beverages Limited's price projections have been gradually lowered, signaling declining confidence in the company's future outlook. The downward revisions suggest analysts are becoming more cautious about Varun Beverages Limited's potential for growth.

Recommendation changes over time:

Recommendations trend for VBL
Recommendations trend for VBL


The recent buy bias for VBL from analysts signals strong confidence in the stock's potential. This positive sentiment could encourage investors to see VBL as a smart place to invest their money, especially those looking for stable, long-term returns in a well-established company.