Varun Beverages Ltd.
NSE: VBLVarun Beverages Ltd.: A 30-second snapshot
Varun Beverages (VBL) trades at ₹442, down 12.72% over the past year and 20.39% below its 52-week high, sitting below both its 50-DMA (₹490.37) and 200-DMA (₹472.99). The company posted 5-year revenue growth of 20.4% and earnings growth of 15.7% with ROE of 16.85%, though free cash flow was positive in only 1 of the last 5 tracked years. Mean analyst rating stands at 1.44 across 25 analysts (1-5 scale, lower = more constructive).
P/E
44.2
Forward P/E
37.8
ROE
+16.9%
Debt / Equity
15.87
Profit Margin
+14.0%
Div. Yield
+0.5%
5Y ROE > 15%
4/5
5Y FCF > 0
1/5
Quality
67/100
News
8 headlines · 5 positive · 3 negative
Varun Beverages posts 15.5% surge in Q1 net, denies bidding stake in Bira 91 - The New Indian Express
The New Indian Express
Varun Beverages Posts 15% Profit Growth, Revenue Jumps 21% in Q2 - HDFC Sky
HDFC Sky
Varun Beverages drops nearly 8% despite 20% revenue growth in Q2; margins, valuation weigh on sentiment - Fortune India
Fortune India
Varun Beverages Share Price Falls Sharply After Q2 Results - NDTV Profit
NDTV Profit
Varun Beverages shares: VBL stock plunges 8% after Q2 results; here's why - Business Today
Business Today
Recent context
- ·Q1 FY26 net profit rose 15.5% per The New Indian Express (July 28); Q2 FY26 revenue grew roughly 21% with about 15% profit growth per HDFC Sky.
- ·Shares fell nearly 8% on July 28, results day; Fortune India, Business Today and NDTV Profit attributed the decline to margin and valuation concerns rather than the headline revenue and profit growth.
- ·Tracked news flow over the period was mixed: 5 of 8 headlines positive, 3 negative, with the overall sentiment label recorded as neutral.
Strengths
- +5-year revenue growth of 20.4% and earnings growth of 15.7%, with ROE above 15% in 4 of the last 5 years (consistency score 83/100).
- +Debt-to-equity of roughly 0.16x with a 'falling' debt trend per persistence data.
- +Ranks 2nd of 6 in its FMCG peer set on both PE (44.24x) and quality score (56), ahead of HINDUNILVR, ITC, TATACONSUM and BRITANNIA on quality score.
- +Mean analyst rating of 1.44 across 25 analysts (1-5 scale, lower = more constructive).
Weaknesses
- −Free cash flow was positive in only 1 of the last 5 tracked years despite double-digit revenue and earnings growth, pointing to elevated capital intensity or working-capital consumption.
- −Price of ₹442 sits below both the 50-DMA (₹490.37) and 200-DMA (₹472.99), down 12.72% over 12 months and 9.54% over 3 months, and 20.39% below the 52-week high.
- −Q2 FY26 results showed ~20-21% revenue growth and ~15% profit growth, yet shares fell nearly 8% on results day, with Fortune India, Business Today and NDTV Profit citing margin and valuation concerns.
- −Trailing PE of 44.24x (forward 37.83x) sits above ITC (18.05x) and near the upper half of the FMCG peer set despite a moderate quality score of 56/100.
Open questions
- ?Does the single year of positive free cash flow out of the last 5 reflect a temporary capacity-expansion cycle or a more structural gap between reported earnings and cash generation?
- ?What specific margin or cost pressures did commentators cite behind the post-results share price decline, and do they look cyclical (input costs, currency) or more structural (competitive intensity)?
- ?How does a trailing PE of 44.24x compare with VBL's own 5-year earnings growth rate of 15.7%, and does that growth pace look sustainable at current capacity utilization?
- ?With the stock currently below both its 50-DMA and 200-DMA, what would a move back above these levels signal about how the market is reconciling the Q2 results with the underlying growth numbers?
Peer comparison: FMCG
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| VBL | Varun Beverages Ltd.You're viewing | 44.2 | +16.9% | 56 |
| Industry avg | across 5 peers | 52.1 | — | 43 |
| NESTLEIND | Nestle India Ltd. | 78.1 | — | 57 |
| TATACONSUM | Tata Consumer Products Ltd. | 65.4 | — | 47 |
| HINDUNILVR | Hindustan Unilever Ltd. | 46.5 | — | 44 |
| BRITANNIA | Britannia Industries Ltd. | 52.4 | — | 39 |
| ITC | ITC Ltd. | 18.1 | — | 29 |
Technical state
Current price
₹442.00
SMA 50
₹490.37
SMA 200
₹472.99
RSI (14)
38.3 (neutral)
From 52w high
-20.4%
1Y return
-12.7%
3M return
-9.5%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highFree cash flow was positive in only 1 of the last 5 tracked years despite 5-year revenue growth of 20.4% and earnings growth of 15.7%, indicating heavy capital intensity or working-capital consumption relative to reported profit growth.
- mediumPrice of ₹442 sits below both the 50-DMA (₹490.37) and 200-DMA (₹472.99), is down 12.72% over the past year and 9.54% over the past 3 months, and is 20.39% below its 52-week high; RSI of 38.29 remains in neutral territory rather than an oversold extreme.
- mediumQ2 FY26 results reported roughly 20-21% revenue growth and ~15% profit growth, yet shares fell nearly 8% on results day (July 28); Fortune India, Business Today and NDTV Profit attributed the move to margin and valuation concerns, and 3 of 8 tracked headlines carry negative sentiment versus 5 positive.
Cross-section contradictions
- Mean analyst rating of 1.44 across 25 analysts sits toward the constructive end of the 1-5 scale (lower = more constructive), while the stock is down 12.72% over the past year, 20.39% below its 52-week high, and trades below both its 50-DMA and 200-DMA.
- Q2 FY26 results showed roughly 20-21% revenue growth and ~15% profit growth, yet the stock fell approximately 8% on the results day per Fortune India, Business Today and NDTV Profit, which cited margin and valuation concerns rather than the headline growth figures.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 11 Aug 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 9 Aug 2026 · rotates through NIFTY 500 every ~5 days