₹407.2
-0.07% today
· 30d -8.09%
as of 2026-09-04
Price · Daily Candles
“Varun Beverages: DIls Boost Holdings as Q4 Profit Jumps 20% While FIIs Trim Stakes”
Varun Beverages (VBL) demonstrates strong quarterly growth with Q4 net profit up 20.15% YoY to ₹879 Cr and revenue increasing 18.34% YoY to ₹6722 Cr. The company's 5-year net profit CAGR of 55.97% underscores robust historical performance, yet it trades at a demanding TTM P/E of 57.33, significantly higher than some sector peers.
BULL CASE
+Q4 2026 revenue surged 18.34% YoY to ₹6722 Cr, indicating strong top-line momentum.
+Net profit saw a 20.15% YoY increase to ₹879 Cr in Q4 2026, showcasing healthy profitability.
+Operating profit margin improved by 0.61% YoY in Q4 2026, reaching 23.24%.
+Company boasts an impressive 5-year net profit CAGR of 55.97%, reflecting sustained growth.
+DIls increased their stake by 0.84% QoQ to 14.4% in Q1 2026, signaling domestic institutional confidence.
BEAR CASE
−FIIs reduced their holding by 0.8% QoQ to 19.51% in Q1 2026, potentially indicating a shift in foreign sentiment.
−The trailing P/E of 57.33 is considerably higher than VincoFe's 47.83, suggesting a stretched valuation relative to peers.
−The stock is trading at 4.36% off its 52-week high of ₹543.7, limiting immediate upside from prior peaks.
−Despite strong growth, the ML model flags weak FCF growth predictions for the recent 2-year and 4-year periods, at 0.384 and 0.532 rank respectively.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-03-31
REVENUE
₹6722 Cr
+18.34% YoY
NET PROFIT
₹879 Cr
+20.15% YoY
OPM
23.24%
+0.61pp YoY
EPS
₹2.58
PE 57.33
Intrinsic value · DCF: N/A — ML model predicts severe Δ FCF compression (h1=+1.4%, h2=-1.3%, h3=-0.8% of mktcap), driving projected FCF negative by year 3 despite healthy current FCF. Treating as forecast outlier rather than reporting a misleading ₹0 valuation. Use the Strategy Fit and ML sections instead.
◇ Sector Position
Varun Beverages, with a TTM P/E of 57.33, trades at a premium to peers like VINCOFE (P/E 47.83), reflecting its higher ROCE compared to VINCOFE's 15.75% and RAMANEWS negative ROCE.
PEERPEROCE %
VBL57.33—
ML Forward Growth Predictions 🔒
48
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
UNDERPERFORMER
20
Valuation
STRETCHED
20
Growth
STEADY
67
Profitability
HIGH
88
Technicals
BEARISH
23
Risk
MODERATE
68
Key Stats
TTM PE
57.33
P/B
9.32
52W HIGH
₹555.8
OFF HIGH
-26.74%
DIV YIELD
0.38%
MKT CAP
₹137391 Cr
◉ Active Signals
MACDBearish-0.6631
RSI(14)Bearish33.18
Near 52W LowBearish6.88
Street Consensus
26 analysts₹587.23
mean target
Low ₹422.0Now ₹407.2High ₹657.0
⧉ Strategy Fit 🔒