Others | FMCG
Nov 16, 2018
Varun Beverages Ltd
BUY
CMP
`807
Varun Beverages, a part of the RJ Group, is an India based franchisee of
Stock Info
carbonated soft drinks (“CSDs”) and non-carbonated beverages (“NCBs”) sold
Sector
FMCG
under trademarks owned by PepsiCo. The company produces and distributes
Market Cap (` cr)
14,734
CSDs and NCBs produced from its 20 manufacturing plants spread in India.
52 Week High / Low
848/590
Apart from India, the company operates in Nepal, Sri Lanka, Morocco, Zambia
Avg. Daily Volume
4,522
and Zimbabwe. Currently, its share of Pepsico beverages volume sales increased
Face Value (`)
10
from 26% in FY11 to 51% in FY18. The beverage company is consistent in its
BSE Sensex
35,457
business operations and has delivered a 17.3% and ~53% CAGR in sales and
Nifty
10,628
PAT, respectively over 5 years. Going forward, the company’s sales and profits
Reuters Code
VARB BO
are expected to bolster on account of: 1) Cost savings from backward integration
Bloomberg Code
VBL IN
to widen margins 2) Addition of premium products to portfolio 3) Acquisition of
new areas (domestic and international) for operation is expected to give room for
growth. 4) Leverage distribution network to expand volume sales.
Shareholding Pattern (%)
On account of all the mentioned growth factors we suggest Buy.
Promoters
73.6
MF / Banks / Indian Fls
5.8
FII / NRIs / OCBs
13.0
Indian Public / Others
7.7
Abs. (%)
3m 1yr
3yr
Sensex
(5.9)
7.1
-
VBL
1.6
63.5
-
Jaikishan Parmar
022 - 3935 7600 Ext: 6810
[email protected]
Please refer to important disclosures at the end of this report
1
Varun Beverages Ltd | FMCG
Research Team Tel: 022 - 39357600
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
Angel Broking Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited, Bombay
Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and
Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Limited is a registered entity
with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number INH000000164. Angel
or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities
Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public offering of securities of
the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,
nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While
Angel Broking Limited endeavors to update on a reasonable basis the information discussed in this material, there may be regulatory,
compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Disclosure of Interest Statement
Varun Beverages
1. Financial interest of research analyst or Angel or his Associate or his relative
No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
No
3. Served as an officer, director or employee of the company covered under Research
No
4. Broking relationship with company covered under Research
No
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15)
2