Let’s dive into a topic that’s super relatable and important to all of us: the beverage industry. Whether you’re sipping on your favorite soda, enjoying a refreshing juice, or simply hydrating with water, beverages are a big part of our daily lives, both here in India and around the world.
But hey, this discussion goes beyond just numbers and sales figures. We’re here to uncover the real story behind the scenes. From the way companies perform to the ever-changing market trends and even how the economy influences it all, there’s a lot to unpack.
Now, picture this: we’re aiming for something big here, a price target of 10k. Can the industry really hit that mark? That’s what we’re here to find out! So grab your favorite drink, settle in, and let’s explore together as we unravel this fascinating journey.
About Varun Beverages
Varun Beverages Ltd has been proudly partnered with PepsiCo since the vibrant ’90s, cementing its position as a key player in the beverage industry. As one of the largest franchisees of PepsiCo globally, Varun Beverages holds a special place in the hearts of consumers, offering a wide range of carbonated soft drinks, non-carbonated beverages, and packaged water under PepsiCo’s esteemed trademarks.
Part of the RJ Group, Varun Beverages shares a lineage with some of India’s most beloved brands, including Pizza Hut, KFC, Cream Bell, and Costa Coffee. With a presence spanning across six countries, Varun Beverages’ operations are deeply rooted in the Indian Subcontinent, where it garners a significant 85% of its total revenues, as well as in Africa, contributing 15% to its revenue stream in FY22.
What sets Varun Beverages apart is its robust distribution network, reaching consumers across urban, semi-urban, and rural markets. Boasting 37 manufacturing facilities in India and 6 internationally, along with a fleet of over 2,500 owned vehicles, the company ensures its products are readily available wherever thirst strikes.
Varun Beverages Q4 Fy2024 Key Points And Summary:
- In Q4 2024, Varun Beverages achieved a remarkable net sales figure of Rs. 5,657 million, showcasing a notable increase from the previous quarter’s Rs. 4,183 million.
- The company’s EBITDA for Q4 2024 amounted to Rs. 2,452 million, marking a substantial growth compared to the same period in the previous year when it was Rs. 1,438 million.
- Varun Beverages maintained a strong profitability stance with a PAT margin of 24.7% in Q4 2024, reflecting efficient cost management and operational performance, an improvement from 22.5% in Q4 2023.
- As Varun Beverages continues to expand its market presence, it remains well-positioned to capitalize on emerging opportunities and drive sustained growth in the future.
Varun Beverages Share Price Target 2024 To 2030
Varun Beverages Share Price Target 2024
| When | Maximum Price | Minimum Price |
| June 2024 | 1,613.30 | 1,402.87 |
| July 2024 | 1,597.17 | 1,388.84 |
| August 2024 | 1,661.06 | 1,444.40 |
| September 2024 | 1,727.50 | 1,502.17 |
| October 2024 | 1,693.63 | 1,472.72 |
| November 2024 | 1,761.37 | 1,531.63 |
| December 2024 | 1,778.99 | 1,546.94 |
In 2024, Varun Beverages is projected to have varied maximum and minimum prices throughout the year. By June 2024, the maximum price is expected to be ₹1,613.30, and the minimum price is projected to be ₹1,402.87. As we step towards December 2024, the maximum price is anticipated to reach ₹1,778.99, with the minimum price at ₹1,546.94.
Varun Beverages Share Price Target 2025
| when | Maximum Price | Minimum Price |
| January 2025 | ₹1,789.42 | ₹1,376.48 |
| February 2025 | ₹1,835.31 | ₹1,411.77 |
| March 2025 | ₹1,906.88 | ₹1,466.83 |
| April 2025 | ₹1,869.49 | ₹1,438.07 |
| May 2025 | ₹1,815.04 | ₹1,396.19 |
| June 2025 | ₹1,896.72 | ₹1,459.01 |
| July 2025 | ₹1,859.53 | ₹1,430.41 |
| August 2025 | ₹1,917.04 | ₹1,474.65 |
| September 2025 | ₹1,984.14 | ₹1,526.26 |
| October 2025 | ₹2,035.72 | ₹1,565.94 |
| November 2025 | ₹2,086.62 | ₹1,605.09 |
| December 2025 | ₹2,138.78 | ₹1,645.22 |
In 2025, Varun Beverages’ share price is expected to showcase a steady upward trajectory, reflecting favorable market conditions and investor confidence. Starting in January with a maximum price of ₹1,789.42 and a minimum of ₹1,376.48, the share price is anticipated to climb consistently throughout the year. By December, it’s projected to reach a maximum of ₹2,138.78, highlighting significant growth potential. Conversely, the minimum price in December is expected to be ₹1,645.22, indicating a strong floor for potential downturns. Overall, 2025 promises a bullish trend for Varun Beverages’ share price, with investors eyeing lucrative opportunities in the company’s performance.
Varun Beverages Share Price Target 2026 To 2030
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹2,245.72 | ₹1,572.00 |
| 2027 | ₹2,470.29 | ₹1,729.20 |
| 2028 | ₹3,458.41 | ₹1,729.20 |
| 2029 | ₹2,994.29 | ₹1,497.15 |
| 2030 | ₹3,892.58 | ₹2,724.81 |
In the coming years from 2026 to 2030, Varun Beverages’ share price is expected to demonstrate a consistent upward trajectory, reflecting the company’s growth and market potential. Starting in 2026, the maximum price is anticipated to reach ₹2,245.72, while the minimum may stabilize around ₹1,572.00. Subsequently, in 2027 and 2028, the expected maximum prices are projected to increase to ₹2,470.29 and ₹3,458.41, respectively. Likewise, the minimum prices are expected to follow an upward trend, reaching ₹1,729.20 in both years. By 2030, the share price is anticipated to soar, with an expected maximum price of ₹3,892.58 and a minimum of ₹2,724.81, reflecting sustained growth and investor confidence.
Varun Beverages’s Financial Condition (Last 5 Years)
| Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | TTM | |
| Sales + | 6,450 | 8,823 | 13,173 | 16,043 | 16,467 |
| Expenses + | 5,235 | 7,129 | 10,310 | 12,326 | 12,668 |
| Operating Profit | 1,215 | 1,694 | 2,863 | 3,717 | 3,799 |
| OPM % | 19% | 19% | 22% | 23% | 23% |
| Other Income + | -30 | 51 | -18 | -5 | 78 |
| Interest | 294 | 207 | 204 | 292 | 299 |
| Depreciation | 529 | 531 | 617 | 681 | 696 |
| Profit before tax | 363 | 1,007 | 2,024 | 2,739 | 2,882 |
| Tax % | 1% | 26% | 23% | 23% | |
| Net Profit + | 357 | 746 | 1,550 | 2,102 | 2,211 |
| EPS in Rs | 2.53 | 5.34 | 11.53 | 15.82 | 16.66 |
| Dividend Payout % | 22% | 16% | 15% | 16% |
Varun Beverages Ltd. (VBL) has shown a Strong financial performance over the past few years. The company’s sales have grown significantly, from ₹6,450 crore in December 2020 to ₹16,467 crore in the trailing twelve months (TTM). This growth reflects VBL’s effective market strategies and expanding operations.
Expenses have also increased, from ₹5,235 crore in December 2020 to ₹12,668 crore in the TTM. Despite the rise in expenses, VBL’s operating profit has seen substantial growth, climbing from ₹1,215 crore in December 2020 to ₹3,799 crore in the TTM. The Operating Profit Margin (OPM) has improved from 19% in 2020 to 23% in recent periods, indicating better cost management and higher operational efficiency.
The company’s other income has fluctuated, showing a loss in some years but recovering to ₹78 crore in the TTM. Interest expenses have remained relatively stable, and depreciation costs have gradually increased, reflecting the company’s expanding asset base.
Profit before tax has surged from ₹363 crore in December 2020 to ₹2,882 crore in the TTM, showcasing strong profitability. The effective tax rate has stabilized around 23% after a low of 1% in December 2020.
FAQS
What is the share price target for Varun Beverages for 2030?
According to our analysis, the share price target for Varun Beverages for 2030 suggests VBL could be trading in the range of ₹2,724.81 and ₹3,892.58.
Can Varun Beverages reach a share price of INR 10,000 by 2025?
As per our analysis, Varun Beverages may not reach Rs. 10,000 INR by 2025. However, by 2050, 10000 INR per VBL share is possible.
What factors are driving the growth of Varun Beverages?
Varun Beverages has seen growth in revenue and profits due to the increasing demand for beverages in India and other countries, as well as its strategic partnership with PepsiCo.
Is Varun Beverages a good investment?
Varun Beverages has shown consistent growth in revenue and profits over the last five years and has a strategic partnership with PepsiCo. While investing always carries some level of risk, Varun Beverages Ltd may be a good investment opportunity for investors looking for exposure to the beverage industry.
Should one invest in Varun Beverages?
Varun Beverages Ltd. (VBL) presents a strong investment opportunity in the beverage sector, characterized by robust financial performance and strategic alliances. With consistent revenue and profit growth, including a recent 77% YoY increase in net profit, VBL demonstrates resilience and substantial potential for expansion. Its partnership with PepsiCo and a leading market position bolster its growth prospects, further supported by the recent commencement of commercial production at a new facility in Gorakhpur, Uttar Pradesh. Share price projections indicate promising growth potential, making VBL an attractive option for long-term investors seeking exposure to a dynamic market. The new facility in Gorakhpur signals VBL’s expansion into new beverage segments and reinforces its commitment to growth and diversification.
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