Do you have any questions about buying Varun Beverages Ltd. shares as a long-term investment? It is worthwhile to examine closely the company’s share price projection for the next ten years given the company’s remarkable revenue growth and profit growth over the past few years. In this article, we’ll examine the company’s financial information for the years 2024 to 2030, including the highest and lowest share prices, EPS, and other significant financial measures. By the time you’re done reading, you’ll know more about whether Varun Beverages Ltd. is a stock you should add to your stock portfolio. Let’s examine their share price goal in more detail and see if the company can achieve INR 10,000 by 2025.
About Varun Beverages
Varun Beverages Limited (VBL) is an Indian company that produces, bottles, and distributes beverages. It is the second-largest bottling company for PepsiCo’s beverages worldwide, excluding the United States. Established in 1995 as a subsidiary of RJ Corp, VBL is named after founder Ravi Jaipuria’s son.
VBL is a key player in the beverage industry and one of the largest franchisees of PepsiCo globally. It produces and distributes a wide range of PepsiCo brands, including Pepsi, Seven-Up, Mirinda Orange, Mountain Dew, and Tropicana Juices. VBL’s stock is traded on the National Stock Exchange (NSE) under the ticker symbol VBL. With its strong market presence and dedicated leadership under Ravi Jaipuria, VBL continues to excel in delivering high-quality beverages to consumers.
Varun Beverages latest news
Varun Beverages has initiated commercial production of carbonated soft drinks and energy drinks at its new facility in Gorakhpur, Uttar Pradesh. This expansion, backed by an investment of Rs 1,100 crore, signifies the company’s foray into new segments. Plans also include introducing juices and value-added dairy products soon. With operations spanning six countries, Varun Beverages is a key player in PepsiCo’s beverage sales in India. Its 2023 net revenues stood at Rs 16,042.58 crore. This move underscores the company’s commitment to growth and diversification in the beverage market.
Varun Beverages Q4 FY24 Results
- Q4 FY24: Varun Beverages reports strong performance.
- Net profit surges 77% YoY to Rs 132 crore
- Total revenue: Rs 2,731 crore, up 21%
- EBIDTA rises 37% to Rs 419 crore, with a margin of 15.3%
- 7.0% increase in net realization per case in 2023 to Rs. 175.7
- Growth driven by focus on smaller SKUs in Indian markets and higher international realization
- Varun Beverages, a major PepsiCo franchisee globally, emphasizes market position strengthening
- Plans to acquire 100% stake in The Beverage Company, South Africa, valued at ZAR 3 billion (~INR 13.20 billion)
Below are the trading platforms that you can use to purchase Varun Beverages shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| July 2024 | 1,629.80 | 1,417.22 |
| August 2024 | 1,695.00 | 1,473.91 |
| September 2024 | 1,762.80 | 1,532.87 |
| October 2024 | 1,728.23 | 1,502.81 |
| November 2024 | 1,797.36 | 1,562.92 |
| December 2024 | 1,815.33 | 1,578.55 |
In 2024, Varun Beverages Share prices are projected to have the following ranges: in July, between ₹1,629.80 and ₹1,417.22; in August, between ₹1,695.00 and ₹1,473.91; in September, between ₹1,762.80 and ₹1,532.87; in October, between ₹1,728.23 and ₹1,502.81; in November, between ₹1,797.36 and ₹1,562.92; and in December, between ₹1,815.33 and ₹1,578.55.
| When | Maximum Price | Minimum Price |
| January 2025 | 1,833.49 | 1,410.38 |
| February 2025 | 1,852.01 | 1,424.62 |
| March 2025 | 1,890.90 | 1,454.54 |
| April 2025 | 1,872.18 | 1,440.14 |
| May 2025 | 1,817.65 | 1,398.19 |
| June 2025 | 1,899.44 | 1,461.11 |
| July 2025 | 1,862.20 | 1,432.46 |
| August 2025 | 1,919.79 | 1,476.76 |
| September 2025 | 1,942.83 | 1,494.48 |
| October 2025 | 1,993.34 | 1,533.34 |
| November 2025 | 2,043.18 | 1,571.67 |
| December 2025 | 2,135.12 | 1,642.40 |
In 2025, Varun Beverages Share prices are projected to have the following ranges: in January, between ₹1,833.49 and ₹1,410.38; in February, between ₹1,852.01 and ₹1,424.62; in March, between ₹1,890.90 and ₹1,454.54; in April, between ₹1,872.18 and ₹1,440.14; in May, between ₹1,817.65 and ₹1,398.19; in June, between ₹1,899.44 and ₹1,461.11; in July, between ₹1,862.20 and ₹1,432.46; in August, between ₹1,919.79 and ₹1,476.76; in September, between ₹1,942.83 and ₹1,494.48; in October, between ₹1,993.34 and ₹1,533.34; in November, between ₹2,043.18 and ₹1,571.67; and in December, between ₹2,135.12 and ₹1,642.40.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹2,369.78 | ₹1,308.85 |
| 2027 | ₹2,656.76 | ₹1,439.73 |
| 2028 | ₹2,879.46 | ₹1,439.73 |
| 2029 | ₹2,993.04 | ₹1,246.52 |
| 2030 | ₹3,240.96 | ₹2,268.67 |
In 2026, Varun Beverages’ share prices are projected to reach a maximum of ₹2,369.78 and a minimum of ₹1,308.85. For 2027, the maximum price is expected to be ₹2,656.76, with a minimum of ₹1,439.73. In 2028, the shares could range from a maximum of ₹2,879.46 to a minimum of ₹1,439.73. By 2029, the prices are projected to vary between ₹2,993.04 and ₹1,246.52. Finally, in 2030, Varun Beverages’ shares are forecasted to have a maximum price of ₹3,240.96 and a minimum of ₹2,268.67.
Financial Condition of Varun Beverages: 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% |
The financial performance of the company from December 2020 to the trailing twelve months (TTM) ending December 2023 shows significant growth and improvements across various metrics:
- Sales: The company’s sales have shown robust growth, increasing from ₹6,450 million in December 2020 to ₹16,043 million in December 2023, and further to ₹16,467 million in the TTM.
- Expenses: Expenses have also risen, from ₹5,235 million in December 2020 to ₹12,326 million in December 2023, and ₹12,668 million in the TTM. However, the increase in sales outpaced the rise in expenses.
- Operating Profit: Operating profit has seen a substantial increase, growing from ₹1,215 million in December 2020 to ₹3,717 million in December 2023, and reaching ₹3,799 million in the TTM. The Operating Profit Margin (OPM) improved from 19% in 2020 and 2021 to 23% in 2023 and TTM.
- Other Income: Other income fluctuated, with notable changes including a decrease to -₹30 million in December 2020, a rise to ₹51 million in December 2021, and reaching ₹78 million in the TTM.
- Interest and Depreciation: Interest expenses slightly decreased from ₹294 million in 2020 to ₹204 million in 2022 but increased to ₹299 million in the TTM. Depreciation rose steadily from ₹529 million in 2020 to ₹696 million in the TTM.
- Profit before Tax: Profit before tax improved significantly, from ₹363 million in December 2020 to ₹2,739 million in December 2023, and further to ₹2,882 million in the TTM.
- Tax: The tax rate was minimal in 2020 (1%) but stabilized around 23-26% in subsequent years.
- Net Profit: Net profit increased remarkably from ₹357 million in December 2020 to ₹2,102 million in December 2023, and ₹2,211 million in the TTM.
- Earnings Per Share (EPS): EPS rose significantly from ₹2.53 in December 2020 to ₹15.82 in December 2023, reaching ₹16.66 in the TTM.
- Dividend Payout: The company maintained a prudent dividend payout policy, with the payout ratio fluctuating slightly from 22% in 2020 to 16% in 2023.
FAQS
According to our analysis, the share price target for Varun Beverages for 2030 suggests VBL could be trading in the range of ₹2,268.67 and ₹3,240.96.
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.
What are the brands that operate under the VBL brand name?
VBL operates and sells various popular PepsiCo brands, which include Pepsi, Seven-Up, Mirinda Orange, Mountain Dew, Tropicana Juices, and numerous others.
ALSO READ:
- P I INDUSTRIES LTD SHARE PRICE TARGET
- INDIAN OIL CORPORATION LTD SHARE PRICE TARGET 2023 to 2030
- ITC SHARE PRICE TARGET 2024 to 2030
Conclusion
Varun Beverages Ltd. (VBL) offers a compelling investment opportunity in the beverage sector, backed by strong financial performance and strategic partnerships. With consistent revenue and profit growth, including a recent surge in net profit by 77% YoY, VBL demonstrates resilience and potential for further expansion. Its partnership with PepsiCo and dominant market position it well for growth, supported by recent initiatives like the commencement of commercial production at a new facility in Uttar Pradesh. Share price projections suggest promising growth potential, making VBL an attractive prospect for long-term investors seeking exposure to a dynamic market. In related news, VBL has initiated commercial production at a new facility in Gorakhpur, Uttar Pradesh, signaling its expansion into new beverage segments and reaffirming its commitment to growth and diversification.
What did we learn?
Twitter
Linkedin
