Varun Beverages Share Price Target 2024, 2025, 2027 to 2040

Table of Contents

Introduction

In today’s blog, we will delve into the Varun Beverages Share Price Target from 2024 to 2040. We conducted thorough research and consulted with experts to provide insights into the company’s growth, performance, and future outlook. This comprehensive analysis will help investors determine whether investing in Varun Beverages shares is a prudent decision over the next few decades.

What is Varun Beverages Ltd Company?

Varun Beverages Ltd is primarily involved in the manufacturing, distribution, and sale of a wide range of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including packaged drinking water, under the PepsiCo brand. VBL has been associated with PepsiCo since 1990, making it one of the largest franchisees of PepsiCo products in India and abroad.

Overview Of Varun Beverages (VBL) Ltd Company

Varun Beverages Ltd has the authorization to supply various PepsiCo products across 27 states and 7 union territories in India, as well as 5 other countries globally. The company distributes popular beverages like Pepsi, Mountain Dew, Mirinda, Tropicana Slice, Duke’s Club Soda, and energy drinks, apart from PepsiCo products. VBL also operates in Nepal, Morocco, and Zambia, enhancing its international footprint.

The chairman, Mr. Ravi Jaipuria, has received PepsiCo’s International Bottler of the Year award. The company has shown significant business progress and market demand, attracting many investors due to its strong net profit and international presence. The share price of Varun Beverages has seen substantial growth since its low in 2009.

Annual Performance Of Varun Beverages

PE Ratio (Price To Earning Ratio)

The PE Ratio is calculated as Market Price per Share / Earnings per Share. It indicates the number of times investors are willing to pay compared to earnings. Varun Beverages Ltd has a PE ratio of 108.23, which is considerably high.

Return on Assets (ROA)

ROA is determined by Profit After Tax / Total Assets. It is influenced by return on sales and asset turnover. Varun Beverages Ltd has an ROA of 14.23%, indicating efficient asset use.

Current Ratio

The Current Ratio is calculated as Current Assets / Current Liabilities. Varun Beverages Ltd has a current ratio of 0.90, suggesting it may face liquidity issues.

Return On Equity (ROE)

ROE is measured by Net Profit / Average Shareholder Equity. Varun Beverages Ltd has an impressive ROE of 28.12%, reflecting strong financial performance.

Varun Beverages Share Price Target 2024, 2025, 2027, 2030, 2040

Varun Beverages Ltd is listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). As PepsiCo’s second-largest bottling company, its performance significantly influences PepsiCo product demand. The company’s share price has shown consistent growth, suggesting potential for future increases. Below are the share price targets from 2024 to 2040.

Varun Beverages Share Price Target 2024

Varun Beverages Ltd is benefitting from the growing beverage market. With high demand for PepsiCo products, the company plans to launch new products and expand its market reach.

The company’s strategy includes new product launches and market segmentation to meet diverse customer demands. The Indian beverage sector’s growth rate is projected to increase by 12% to 17% CAGR, supporting the company’s share price targets.

Varun Beverages Share Price Target 2025

Varun Beverages Ltd is expanding its business in developing nations like Sri Lanka, Morocco, and Zambia. The company’s management plans to enhance its global presence, improving profitability.

The company focuses on maintaining production quality using advanced technology, ensuring sustained growth and meeting export demands. This strategic approach supports the projected share price targets.

Varun Beverages Share Price Target 2027

Foreign Institutional Investors (FIIs) hold 25.69% of Varun Beverages shares, indicating strong foreign investor confidence. The company’s market holding capacity is 62.25%, attracting significant investment.

Varun Beverages’ robust market position and consistent sales growth support these share price targets.

Varun Beverages Share Price Target 2030

In developing countries like India, changing lifestyles are likely to increase soft drink consumption, offering significant growth opportunities for Varun Beverages Ltd.

The company’s strong profit growth (71% in the last 5 years) and market potential justify these long-term share price targets.

Varun Beverages Share Price Target 2040

Varun Beverages Ltd is focusing on advertising to increase product visibility and net sales. Effective marketing strategies are crucial for maintaining growth.

The company’s ability to sustain performance, profit growth, and product quality will determine the accuracy of these long-term projections.

Investors Types and Ratios Of Varun Beverages Share

Varun Beverages Share has diverse investors, categorized into four main types:

Promoters Holding (64.23%)

Promoters Holding represents the capital invested by the company’s owners. For Varun Beverages Share, this is 64.23%.

Public Holding (7.75%)

Public Holding involves individuals investing in the public market for future profits. For Varun Beverages Share, this is 7.75%.

FII (Foreign Institutional Investors) 25.69%

FIIs are large companies investing in foreign enterprises. For Varun Beverages Share, this is 25.69%.

DII (Domestic Institutional Investors) 2.33%

DIIs, such as insurance companies and mutual funds, invest domestically. For Varun Beverages Share, this is 2.33%.

Advantages and Disadvantages Of Varun Beverages Share

Advantages

• Profit Growth: The company has seen a 71% increase in net profit over the last 5 years, a positive indicator of growth.
• Revenue Growth: Revenue has grown by 22.23% in the past 3 years.
• Cash Flow: The company has a strong cash conversion cycle of 10.68 days, supporting its growth.

Disadvantages

1. Decreased Book Value: The book value of the company has decreased over the past two years.
2. High Competition: The beverage sector is highly competitive, posing challenges for market share and profitability.

Also Read: TVS Motor Share Price Target 2024, 2025, 2027, 2030

FAQs

Conclusion

Varun Beverages Ltd has shown consistent growth and has significant potential for the future. As the company continues to expand its market presence both domestically and internationally, it is well-positioned to capitalize on the growing demand for PepsiCo products. With strong financial performance and strategic initiatives, Varun Beverages shares are a promising investment for those looking at long-term gains in the beverage sector.

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Disclaimer: This content is for educational purposes only and does not constitute financial advice. Investing in the financial markets involves risk. Please consult a certified financial advisor before making any investment decisions.