VARUN BEVERAGES LTD Company Profile

Dabur Ltd is an Indian multinational consumer goods company, founded by S. K. Burman and
headquartered in Ghaziabad.It manufactures Ayurvedic medicine and natural consumer products,
and is one of the largest fast-moving consumer goods (FMCG) companies in India.

INR crores
Key Financial Metrics Dec/19 Dec/20 Dec/21 Dec/22 Dec/23 Share Price - 5Y
Total Sales 7,130 6,450 8,823 13,173 16,043 700
Sales Growth(YoY) 39.65% -9.53% 36.79% 49.30% 21.78%
600
Gross Profit Margins 36.10% 35.11% 35.30% 35.87% 38.04%
EBITDA Margins 21.17% 18.37% 19.78% 21.60% 23.14% 500
EBIT Margins 14.31% 10.17% 13.75% 16.91% 18.89%
400
Net Profit Margins 6.62% 5.54% 8.46% 11.77% 13.10%
Earnings Per Share (Rs.) 1.45 1.10 2.30 4.77 6.47 300
EPS Growth 49.44% -24.34% 108.81% 107.77% 35.58%
200
Dividend Per Share (Rs.) 0.22 0.22 0.33 0.70 1.00

2019
2019
2019
2029
2020
2020
2020
2021
2021
2021
2022
2022
2022
2023
2023
2023
3
DPS Growth 50.00% 0.00% 50.00% 109.99% 42.86%

201
Key Financial Ratios Dec/19 Dec/20 Dec/21 Dec/22 Dec/23 Volumes - 5Y
P/E ratio 43.62x 80.38x 55.42x 57.37x 78.16x ₹ 100L
EV/EBITDA 15.74x 25.48x 24.53x 32.06x 45.19x ₹ 75L
EV/Sales 3.32x 4.57x 4.71x 6.79x 10.33x ₹ 50L
Price to Book Value 6.15x 7.50x 9.43x 16.84x 23.17x ₹ 25L
Return on Equity(%) 14% 9% 17% 29% 30% ₹ 0L
ROCE(%) 18% 10% 17% 27% 28%

2019
2019
2019
2029
2020
2020
2020
2021
2021
2021
2022
2022
2022
2023
2023
2023
3
201
Top 10 Shareholders Shares Held (Cr.) % Held Market Value (Cr.) Shareholding Pattern
VIC ENTERPRISES PRIVATE LIMITED 22 12.29% 11979
CHOWDRY ASSOCIATES 21 11.80% 11500
Public & Government 5.61%
GYAN ENTERPRISES PRIVATE LIMITED 19 10.91% 10636
PURAN ASSOCIATES PRIVATE LIMITED 19 10.68% 10407
RATNA COMMERCIAL ENTERPRISES PRIVATE LIMITED 16 8.94% 8710 DII 9.78%

MILKY INVESTMENT AND TRADING COMPANY 11 5.99% 5838

BURMANS FINVEST PRIVATE LIMITED 5 2.99% 2916 FII 18.37%
LICI ASM NON PAR 5 2.86% 2789
M.B. FINMART PRIVATE LIMITED 3 1.50% 1458 Promoters 66.24%
NPS TRUST- A/C UTI RETIREMENT SOLUTIONS PF 2 1.15% 1118

Net Profits - 5Y EBIT GROWTH - 5Y Capital Structure

₹ 1,800Cr. This chart isn't available in your version of Excel.
Share Price as on 14 Jan 2024 629
₹ 1,650Cr. Editing this shape or saving this workbook into a No of Share o/s 325
different file format will permanently break the Market Capitalization 204,347
₹ 1,500Cr.
chart.
Less: Cash & Equivalents (460)
₹ 1,350Cr.
Add: Total Debt 5,431
₹ 1,200Cr. Enterprise Value 209,318
2019 2020 2021 2022 2023
 Historical Financial Statements - VARUN BEVERAGES LTD
Year December/14 December/15 December/16 December/17 December/18 December/19 December/20 December/21 December/22 December/23

# Income Statement
Sales ₹ 2,502.40 ₹ 3,394.14 ₹ 3,861.18 ₹ 4,003.54 ₹ 5,105.26 ₹ 7,129.58 ₹ 6,450.14 ₹ 8,823.23 ₹ 13,173.14 ₹ 16,042.58
Sales Growth 35.64% 13.76% 3.69% 27.52% 39.65% -9.53% 36.79% 49.30% 21.78%

COGS ₹ 1,801.89 ₹ 2,303.29 ₹ 2,470.21 ₹ 2,587.77 ₹ 3,213.75 ₹ 4,555.47 ₹ 4,185.37 ₹ 5,708.37 ₹ 8,447.62 ₹ 9,939.51
COGS %Sales 72.01% 67.86% 63.98% 64.64% 62.95% 63.90% 64.89% 64.70% 64.13% 61.96%

Gross Profit ₹ 700.51 ₹ 1,090.85 ₹ 1,390.97 ₹ 1,415.77 ₹ 1,891.51 ₹ 2,574.11 ₹ 2,264.77 ₹ 3,114.86 ₹ 4,725.52 ₹ 6,103.07
Gross Margin 27.99% 32.14% 36.02% 35.36% 37.05% 36.10% 35.11% 35.30% 35.87% 38.04%

Selling & Administration Expenses ₹ 313.62 ₹ 448.38 ₹ 581.46 ₹ 577.44 ₹ 855.71 ₹ 1,111.79 ₹ 1,049.81 ₹ 1,420.91 ₹ 1,862.52 ₹ 2,386.33
S&G % Sales 12.53% 13.21% 15.06% 14.42% 16.76% 15.59% 16.28% 16.10% 14.14% 14.87%

Other Income ₹ 14.30 ₹ 35.70 ₹ 26.77 ₹ 13.86 ₹ 5.87 ₹ 46.89 ₹ (30.01) ₹ 50.89 ₹ (18.08) ₹ (4.87)
Other Income % Sales 0.57% 1.05% 0.69% 0.35% 0.11% 0.66% -0.47% 0.58% -0.14% -0.03%

EBITDA ₹ 401.19 ₹ 678.17 ₹ 836.28 ₹ 852.19 ₹ 1,041.67 ₹ 1,509.21 ₹ 1,184.95 ₹ 1,744.84 ₹ 2,844.92 ₹ 3,711.87
EBITDA % Sales 16.03% 19.98% 21.66% 21.29% 20.40% 21.17% 18.37% 19.78% 21.60% 23.14%

Interest ₹ 187.36 ₹ 170.15 ₹ 434.74 ₹ 214.59 ₹ 222.80 ₹ 324.31 ₹ 293.74 ₹ 206.97 ₹ 204.09 ₹ 291.60
Interest % Sales 7.49% 5.01% 11.26% 5.36% 4.36% 4.55% 4.55% 2.35% 1.55% 1.82%

Depreciation ₹ 210.06 ₹ 317.41 ₹ 322.21 ₹ 346.64 ₹ 385.07 ₹ 488.63 ₹ 528.70 ₹ 531.26 ₹ 617.19 ₹ 680.91
Depreciation % Sales 8.39% 9.35% 8.34% 8.66% 7.54% 6.85% 8.20% 6.02% 4.69% 4.24%

Earnings Before Tax ₹ 3.77 ₹ 190.61 ₹ 79.33 ₹ 290.96 ₹ 433.80 ₹ 696.27 ₹ 362.51 ₹ 1,006.61 ₹ 2,023.64 ₹ 2,739.36
EBT %Sales 0.15% 5.62% 2.05% 7.27% 8.50% 9.77% 5.62% 11.41% 15.36% 17.08%

Tax ₹ 24.81 ₹ 78.85 ₹ 31.30 ₹ 76.90 ₹ 133.93 ₹ 224.07 ₹ 5.23 ₹ 260.55 ₹ 473.53 ₹ 637.55
Effective Tax Rate 658.09% 41.37% 39.46% 26.43% 30.87% 32.18% 1.44% 25.88% 23.40% 23.27%

Net Profit ₹ (21.04) ₹ 111.76 ₹ 48.03 ₹ 214.06 ₹ 299.87 ₹ 472.20 ₹ 357.28 ₹ 746.06 ₹ 1,550.11 ₹ 2,101.81
Net Margins -0.84% 3.29% 1.24% 5.35% 5.87% 6.62% 5.54% 8.46% 11.77% 13.10%

No. of Equity Shares 225.72 225.72 307.67 308.15 308.21 324.77 324.77 324.78 324.78 324.80

Earnings Per Share ₹ (0.09) ₹ 0.50 ₹ 0.16 ₹ 0.69 ₹ 0.97 ₹ 1.45 ₹ 1.10 ₹ 2.30 ₹ 4.77 ₹ 6.47
EPS Growth -631.18% -68.47% 344.99% 40.06% 49.44% -24.34% 108.81% 107.77% 35.58%

Dividend Per Share - - - ₹ 0.15 ₹ 0.15 ₹ 0.22 ₹ 0.22 ₹ 0.33 ₹ 0.70 ₹ 1.00
Dividend Payout Ratio 0.00% 0.00% 0.00% 21.33% 15.23% 15.28% 20.20% 14.51% 14.67% 15.45%

Retention Ratio 0.00% 100.00% 100.00% 78.67% 84.77% 84.72% 79.80% 85.49% 85.33% 84.55%
# Balance Sheet
Equity Share Capital ₹ 133.77 ₹ 133.77 ₹ 182.31 ₹ 182.59 ₹ 182.64 ₹ 288.69 ₹ 288.69 ₹ 433.03 ₹ 649.55 ₹ 649.61
Reserves ₹ 9.31 ₹ 90.51 ₹ 1,511.28 ₹ 1,586.84 ₹ 1,815.86 ₹ 3,039.73 ₹ 3,235.31 ₹ 3,646.88 ₹ 4,452.83 ₹ 6,286.89
Borrowings ₹ 2,615.31 ₹ 2,527.35 ₹ 2,215.40 ₹ 2,653.70 ₹ 2,807.87 ₹ 3,417.18 ₹ 3,216.13 ₹ 3,386.76 ₹ 3,883.81 ₹ 5,431.31
Other Liabilities ₹ 533.25 ₹ 1,679.62 ₹ 915.43 ₹ 852.48 ₹ 1,191.64 ₹ 1,629.98 ₹ 1,707.24 ₹ 2,112.81 ₹ 2,632.05 ₹ 2,819.37
Total Liabilities ₹ 3,291.64 ₹ 4,431.25 ₹ 4,824.42 ₹ 5,275.61 ₹ 5,998.01 ₹ 8,375.58 ₹ 8,447.37 ₹ 9,579.48 ₹ 11,618.24 ₹ 15,187.18

Fixed Asset Net Block ₹ 2,354.87 ₹ 3,495.57 ₹ 3,715.50 ₹ 3,980.52 ₹ 4,386.97 ₹ 6,479.04 ₹ 6,408.62 ₹ 6,310.78 ₹ 6,932.22 ₹ 8,409.17
Capital Work in Progress ₹ 24.75 ₹ 37.91 ₹ 95.58 ₹ 145.44 ₹ 352.36 ₹ 63.82 ₹ 66.82 ₹ 496.61 ₹ 606.63 ₹ 1,922.22
Investments ₹ 303.74 ₹ 3.27 ₹ 6.87 ₹ 8.23 ₹ 11.24 - - - ₹ 0.01 ₹ 21.08
Other Assets ₹ 187.33 ₹ 313.86 ₹ 319.49 ₹ 457.82 ₹ 447.53 ₹ 607.57 ₹ 611.28 ₹ 766.13 ₹ 1,500.88 ₹ 1,864.93
Total Non Current Assets ₹ 2,870.69 ₹ 3,850.61 ₹ 4,137.44 ₹ 4,592.01 ₹ 5,198.10 ₹ 7,150.43 ₹ 7,086.72 ₹ 7,573.52 ₹ 9,039.74 ₹ 12,217.40

Receivables ₹ 97.29 ₹ 97.91 ₹ 131.35 ₹ 150.25 ₹ 128.03 ₹ 172.56 ₹ 241.80 ₹ 221.25 ₹ 299.34 ₹ 359.39
Inventory ₹ 289.25 ₹ 424.66 ₹ 489.93 ₹ 438.89 ₹ 578.40 ₹ 881.51 ₹ 928.80 ₹ 1,448.09 ₹ 1,993.89 ₹ 2,150.53
Cash & Bank ₹ 34.41 ₹ 58.07 ₹ 65.70 ₹ 94.46 ₹ 93.48 ₹ 171.08 ₹ 190.05 ₹ 336.62 ₹ 285.27 ₹ 459.86
Total Current Assets ₹ 420.95 ₹ 580.64 ₹ 686.98 ₹ 683.60 ₹ 799.91 ₹ 1,225.15 ₹ 1,360.65 ₹ 2,005.96 ₹ 2,578.50 ₹ 2,969.78

Total Assets ₹ 3,291.64 ₹ 4,431.25 ₹ 4,824.42 ₹ 5,275.61 ₹ 5,998.01 ₹ 8,375.58 ₹ 8,447.37 ₹ 9,579.48 ₹ 11,618.24 ₹ 15,187.18

CHECK Ok Ok Ok Ok Ok Ok Ok Ok Ok Ok

# Cash Flow Statements

Cash from Operating Activity ₹ 430.86 ₹ 554.79 ₹ 825.78 ₹ 619.76 ₹ 999.78 ₹ 1,307.60 ₹ 1,011.99 ₹ 1,231.42 ₹ 1,790.03 ₹ 2,390.78
Cash from Investing Activity ₹ (499.96) ₹ (299.67) ₹ (1,047.80) ₹ (745.95) ₹ (937.40) ₹ (2,319.90) ₹ (471.68) ₹ (1,007.55) ₹ (1,768.51) ₹ (3,287.80)
Cash from Financing Activity ₹ 57.73 ₹ (236.00) ₹ 230.23 ₹ 158.63 ₹ (84.39) ₹ 1,107.34 ₹ (573.72) ₹ (177.68) ₹ (17.94) ₹ 984.90

Net Cash Flow ₹ (11.37) ₹ 19.12 ₹ 8.21 ₹ 32.45 ₹ (22.01) ₹ 95.03 ₹ (33.41) ₹ 46.19 ₹ 3.58 ₹ 87.88
 Ratio Analysis - VARUN BEVERAGES LTD
Year ### ### ### ### ### ### ### ### ### ### Trend Mean Median

Sales Growth 35.64% 13.76% 3.69% 27.52% 39.65% -9.53% 36.79% 49.30% 21.78% 24.29% 27.52%
EBITDA Growth 69.04% 23.31% 1.90% 22.23% 44.88% -21.49% 47.25% 63.05% 30.47% 31.18% 30.47%
EBT Growth 4955.97% -58.38% 266.77% 49.09% 60.50% -47.94% 177.68% 101.04% 35.37% 615.57% 60.50%
Net Profit Growth -631.18% -57.02% 345.68% 40.09% 57.47% -24.34% 108.82% 107.77% 35.59% -1.90% 40.09%
Dividend Growth 0.00% 0.00% 0.00% 0.00% 50.00% 0.00% 50.00% 109.99% 42.86% 28.10% 0.00%

Gross Margin 27.99% 32.14% 36.02% 35.36% 37.05% 36.10% 35.11% 35.30% 35.87% 38.04% 34.90% 35.62%
EBITDA Margin 16.03% 19.98% 21.66% 21.29% 20.40% 21.17% 18.37% 19.78% 21.60% 23.14% 20.34% 20.79%
EBIT Margin 7.64% 10.63% 13.31% 12.63% 12.86% 14.31% 10.17% 13.75% 16.91% 18.89% 13.11% 13.09%
EBT Margin 0.15% 5.62% 2.05% 7.27% 8.50% 9.77% 5.62% 11.41% 15.36% 17.08% 8.28% 7.88%
Net Profit Margin -0.84% 3.29% 1.24% 5.35% 5.87% 6.62% 5.54% 8.46% 11.77% 13.10% 6.04% 5.71%

SalesExp%Sales 12.53% 13.21% 15.06% 14.42% 16.76% 15.59% 16.28% 16.10% 14.14% 14.87% 14.90% 14.97%
Depreciation%Sales 8.39% 9.35% 8.34% 8.66% 7.54% 6.85% 8.20% 6.02% 4.69% 4.24% 7.23% 7.87%
OperatingIncome%Sales 7.64% 10.63% 13.31% 12.63% 12.86% 14.31% 10.17% 13.75% 16.91% 18.89% 13.11% 13.09%
OtherIncome%Sales 0.57% 1.05% 0.69% 0.35% 0.11% 0.66% -0.47% 0.58% -0.14% -0.03% 0.34% 0.46%

Return on Capital Employed 6.93% 13.11% 13.15% 11.43% 13.66% 15.13% 9.74% 16.25% 24.79% 24.51% 14.87% 13.41%
Retained Earning% 0.00% 100.00% 100.00% 78.67% 84.77% 84.72% 79.80% 85.49% 85.33% 84.55% 78.33% 84.74%
Return on Equity% -14.71% 49.83% 2.84% 12.10% 15.00% 14.19% 10.14% 18.29% 30.38% 30.30% 16.84% 14.60%
Self Sustained Growth Rate 0.00% 49.83% 2.84% 9.52% 12.72% 12.02% 8.09% 15.63% 25.92% 25.62% 16.22% 12.37%
Interest Coverage Ratio 1.02x 2.12x 1.18x 2.36x 2.95x 3.15x 2.23x 5.86x 10.92x 10.39x 421.80% 265.15%

Debtor Turnover Ratio 25.72x 34.67x 29.40x 26.65x 39.88x 41.32x 26.68x 39.88x 44.01x 44.64x 35.28x 37.27x
Creditor Turnover Ratio 4.69x 2.02x 4.22x 4.70x 4.28x 4.37x 3.78x 4.18x 5.00x 5.69x 4.29x 4.33x
Inventory Turnover 8.65x 7.99x 7.88x 9.12x 8.83x 8.09x 6.94x 6.09x 6.61x 7.46x 7.77x 7.94x
Fixed Asset Turnover 1.06x 0.97x 1.04x 1.01x 1.16x 1.10x 1.01x 1.40x 1.90x 1.91x 1.26x 1.08x
Capital Turnover Ratio 17.49x 15.13x 2.28x 2.26x 2.55x 2.14x 1.83x 2.16x 2.58x 2.31x 5.07x 2.30x

Debtor days 14 11 12 14 9 9 14 9 8 8 11 10
Payable days 78 181 87 78 85 83 97 87 73 64 91 84
Inventory days 42 46 46 40 41 45 53 60 55 49 48 46
Cash conversion cycle(in days) -21 -124 -28 -24 -35 -29 -30 -18 -9 -7 -33 -26

CFO/Sales 17.22% 16.35% 21.39% 15.48% 19.58% 18.34% 15.69% 13.96% 13.59% 14.90% 16.65% 16.02%
CFO/Total Assets 13.09% 12.52% 17.12% 11.75% 16.67% 15.61% 11.98% 12.85% 15.41% 15.74% 14.27% 14.25%
CFO/Total Debt 16.47% 21.95% 37.27% 23.35% 35.61% 38.27% 31.47% 36.36% 46.09% 44.02% 33.09% 35.98%
 Common Size Income Statement - VARUN BEVERAGES LTD

Particulars Dec/14 Dec/15 Dec/16 Dec/17 Dec/18 Dec/19 Dec/20 Dec/21 Dec/22 Dec/23
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 54.98% 51.43% 45.83% 47.04% 45.18% 47.17% 43.12% 46.86% 50.14% 46.68%
Change in Inventory -0.01% 0.85% 0.83% 1.83% 1.22% 2.02% 0.27% 1.13% 2.62% 0.53%
Power and Fuel 4.54% 3.86% 4.05% 4.00% 3.82% 3.91% 4.14% 3.74% 3.64% 3.43%
Other Mfr. Exp 3.81% 3.88% 4.01% 3.86% 3.75% 3.44% 4.10% 3.72% 3.58% 3.35%
Employee Cost 8.66% 9.54% 10.92% 11.57% 11.42% 11.38% 13.80% 11.51% 9.38% 9.02%
Selling and admin 11.92% 12.54% 14.06% 13.14% 33.16% 33.24% 32.43% 15.40% 13.49% 14.05%
Other Expenses 0.61% 0.67% 1.00% 1.29% -16.40% -17.65% -16.15% 0.70% 0.65% 0.83%
Other Income 0.57% 1.05% 0.69% 0.35% 0.11% 0.66% -0.47% 0.58% -0.14% -0.03%
Depreciation 8.39% 9.35% 8.34% 8.66% 7.54% 6.85% 8.20% 6.02% 4.69% 4.24%
Interest 7.49% 5.01% 11.26% 5.36% 4.36% 4.55% 4.55% 2.35% 1.55% 1.82%
Profit before tax 0.15% 5.62% 2.05% 7.27% 8.50% 9.77% 5.62% 11.41% 15.36% 17.08%
Tax 0.99% 2.32% 0.81% 1.92% 2.62% 3.14% 0.08% 2.95% 3.59% 3.97%
Net profit -0.81% 3.33% 1.10% 5.25% 5.74% 6.58% 5.10% 7.87% 11.37% 12.82%
Dividend Amount 0.00% 0.00% 0.00% 1.14% 0.89% 1.01% 1.12% 1.23% 1.73% 2.02%
EBITDA 16.07% 20.02% 21.51% 21.19% 20.27% 21.12% 17.93% 19.19% 21.20% 22.85%

Common Size Balance Sheet - VARUN BEVERAGES LTD

Particulars Dec/14 Dec/15 Dec/16 Dec/17 Dec/18 Dec/19 Dec/20 Dec/21 Dec/22 Dec/23

Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 4.06% 3.02% 3.78% 3.46% 3.05% 3.45% 3.42% 4.52% 5.59% 4.28%
Reserves 0.28% 2.04% 31.33% 30.08% 30.27% 36.29% 38.30% 38.07% 38.33% 41.40%
Borrowings 79.45% 57.03% 45.92% 50.30% 46.81% 40.80% 38.07% 35.35% 33.43% 35.76%
Other Liabilities 16.20% 37.90% 18.97% 16.16% 19.87% 19.46% 20.21% 22.06% 22.65% 18.56%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 71.54% 78.88% 77.01% 75.45% 73.14% 77.36% 75.87% 65.88% 59.67% 55.37%
Capital Work in Progress 0.75% 0.86% 1.98% 2.76% 5.87% 0.76% 0.79% 5.18% 5.22% 12.66%
Investments 9.23% 0.07% 0.14% 0.16% 0.19% 0.00% 0.00% 0.00% 0.00% 0.14%
Other Assets 5.69% 7.08% 6.62% 8.68% 7.46% 7.25% 7.24% 8.00% 12.92% 12.28%
Receivables 2.96% 2.21% 2.72% 2.85% 2.13% 2.06% 2.86% 2.31% 2.58% 2.37%
Inventory 8.79% 9.58% 10.16% 8.32% 9.64% 10.52% 11.00% 15.12% 17.16% 14.16%
Cash & Bank 1.05% 1.31% 1.36% 1.79% 1.56% 2.04% 2.25% 3.51% 2.46% 3.03%
-
DCF Intrinsic Valuation
Calculation of PV of FCFF Dec/23A Dec/24F Dec/25F Dec/26F Dec/27F Dec/28F

EBIT 2,985.07 3,458.15 4,006.19 4,641.10 5,376.62 6,228.71

Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
EBIT(1-Tax) 2,238.80 2,593.61 3,004.65 3,480.82 4,032.46 4,671.53
Less: Reinvestment Rate 19.57% 19.57% 19.57% 19.57% 19.57% 19.57%
Free Cash Flow to Firm(FCFF) 1,800.59 2,085.95 2,416.53 2,799.51 3,243.17 3,757.15
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.942 0.837 0.743 0.660 0.586
PV of FCFF 1,965.71 2,022.28 2,080.47 2,140.34 2,201.93

Expected Growth 15.85%

WACC 12.61%

Calculation of Terminal Value Sensitivity Analysis (Enterprise Value)

### 8.00% 10.00% 12.61% 14.00% 16.00%
FCFF(n+1) 3,978.82 3.00% 55,770.6 42,810.6 34,011.1 31,028.9 27,856.8
Terminal Growth * 5.90% 4.00% 67,661.0 48,577.6 37,007.9 33,310.9 29,494.2
WACC 12.61% 5.90% 121,451.2 67,285.1 45,162.6 39,199.0 33,498.4
Terminal Value 59,318.31 6.00% 127,113.3 68,762.0 45,721.7 39,586.4 33,751.3
* Long term GDP growth rate for the country 7.00% 246,017.8 88,946.4 52,408.4 44,068.9 36,589.3

Calculation of Equity Value Sensitivity Analysis (Equity Value Per Share)

137.34 8.00% 10.00% 12.61% 14.00% 16.00%
PV of FCFF 10,410.75 3.00% 169.9 130.1 103.0 93.8 84.1
PV of Terminal Value 34764.37 4.00% 206.5 147.8 112.2 100.8 89.1
Enterprise Value 45,175.12 5.90% 372.0 205.4 137.3 119.0 101.4
6.00% 389.5 209.9 139.0 120.1 102.2
Add: Cash 459.86 7.00% 755.3 272.0 159.6 133.9 110.9
Less: Debt 999
Equity Value 44,635.98

No. of Shares 325.00

Equity Value Per Share 137.34

Share Price 550

Discount/ Premium 3.00x
Weighted Average Cost of Capital
All figures are in INR unless stated otherwise.

Peer Comps
Debt/ Debt/ Levered Unlevered
Name Country Total Debt Total Equity Tax Rate 1 Equity Capital Beta 2 Beta 3

Dabur India India 1,489.1 9,487.5 25.00% 15.69% 13.57% 0.78 0.70
Godrej Consumer India 3,275.0 14,499.9 25.00% 22.59% 18.42% 0.48 0.41
Emami India 107.5 2,405.7 25.00% 4.47% 4.28% 0.57 0.55
Jyothy Labs India 44.8 1,639.2 25.00% 2.74% 2.66% 0.51 0.50

Average 25.00% 11.37% 9.73% 0.58 0.54

Median 25.00% 10.08% 8.92% 0.54 0.53

Cost of Debt Cost of Equity

Pre-tax Cost of Debt 5.25% Risk Free Rate 7.39%

Tax Rate 25.00% Equity Risk Premium 9.57%
After Tax Cost of Debt 3.94% Levered Beta 4 0.64
Cost of Equity 13.54%

Capital Structure Levered Beta

Current Target Comps Median Unlevered Beta 0.53

Total Debt 1,489.1 13.57% 9.73% Target Debt/ Equity 10.78%
Market Capitalization 9,487.5 86.43% 90.27% Tax Rate 25.00%
Total Capitalization 10976.51 100.00% 100.00% Levered Beta 0.64

Debt / Equity 15.69% 10.78% Weighted Average Cost of Capital

1. Tax Rate considered as Marginal Tax Rate for the country Cost of Equity 13.54%
2. Levered Beta is based on 5 year monthly data Equity Weight 90.27%
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate) x Debt/Equity)
3. Levered Beta = Unlevered Beta/(1+(1-Tax Rate) x Debt/Equity) Cost of Debt 3.94%
Debt Weight 9.73%
WACC 12.61%
 Intrinsic Growth
Calculation of ROIC Dec/19 Dec/20 Dec/21 Dec/22 Dec/23
Current Assets
Inventories 1,301.0 1,380.0 1,734.0 1,911.0 2,024.0
Trade receivables 834.0 814.0 562.0 646.0 849.0
Short term loans 22.0 23.0 20.0 24.0 33.0
Other asset items 561.0 1,109.0 639.0 437.0 401.0
Total Current Assets 2,718.0 3,326.0 2,955.0 3,018.0 3,307.0

Current Liabilities
Trade Payables 1,455.0 1,482.0 1,915.0 2,018.0 2,187.0
Advance from Customers 28.0 30.0 43.0 37.0 9.0
Other liability items 591.0 660.0 666.0 777.0 842.0
Total 2,074.0 2,172.0 2,624.0 2,832.0 3,038.0

# Net Working Capital 644.0 1,154.0 331.0 186.0 269.0

Non Current Assets

Land 108.0 103.0 93.0 123.0 141.0
Building 788.0 1,054.0 1,057.0 1,144.0 1,279.0
Plant Machinery 1,527.0 1,719.0 1,862.0 2,074.0 2,408.0
Equipments 68.0 69.0 73.0 78.0 88.0
Furniture n fittings 113.0 126.0 129.0 134.0 148.0
Vehicles 44.0 45.0 45.0 47.0 43.0
Intangible Assets 367.0 374.0 375.0 291.0 1,322.0
Other fixed assets 125.0 139.0 146.0 149.0 154.0
Gross Block 3,140.0 3,629.0 3,780.0 4,040.0 5,583.0
Accumulated Depreciation 1,170.0 1,377.0 1,536.0 1,733.0 2,004.0
# Net Non Current Assets 1,970.0 2,252.0 2,244.0 2,307.0 3,579.0

# Invested Capital 2,614.0 3,406.0 2,575.0 2,493.0 3,848.0

EBIT 1,017.4 628.0 1,161.6 2,175.1 2,985.1

# ROIC 39% 18% 45% 87% 78%

Calculation of Reinvestment Rate Dec/19 Dec/20 Dec/21 Dec/22 Dec/23

Net Capex 225.0 400.0 306.0 369.0 486.0

Change in Working Capital 510.0 (823.0) (145.0) 83.0

EBIT 1,017.4 628.0 1,161.6 2,175.1 2,985.1

Marginal Tax 25% 25% 25% 25% 25%
EBIT(1-Tax) 763.0 471.0 871.2 1,631.3 2,238.8

Reinvestment 910.0 (517.0) 224.0 569.0

Reinvestment Rate 193.22% -59.34% 13.73% 25.42%

 4 Year Average 43.25%
4 Year Median 19.57%

Calculation of Growth Rate Dec/19 Dec/20 Dec/21 Dec/22 Dec/23

Reinvestment Rate 193% -59% 14% 25%

ROIC 18% 45% 87% 78%

Intrinsic Growth 35.62% -26.77% 11.98% 19.72%

4 Year Average 10.14%

4 Year Median 15.85%
Regression Beta - 2 Years Weekly

VARUN BEVERAGES LTD Returns NIFTY Returns

Date Closing Price Return Closing Price Return Beta 0.78

1/10/2022 564.9 18,255.8
1/17/2022 541.1 -4.21% 17,617.2 -3.50%
1/24/2022 523.8 -3.19% 17,101.9 -2.92% Last 100 weeks Returns
1/31/2022 558.2 6.56% 17,516.3 2.42%
15%
2/7/2022 550.2 -1.43% 17,374.8 -0.81%
2/14/2022 537.4 -2.33% 17,276.3 -0.57% 10%
2/21/2022 534.5 -0.54% 16,658.4 -3.58%
2/28/2022 528.8 -1.06% 16,245.3 -2.48% 5%
3/7/2022 537.2 1.58% 16,630.4 2.37%
0%
3/14/2022 549.6 2.32% 17,287.1 3.95%
3/21/2022 509.9 -7.22% 17,153.0 -0.78% -5%
3/28/2022 532.2 4.36% 17,670.4 3.02%
4/4/2022 546.4 2.67% 17,784.3 0.64% -10%
4/11/2022 545.4 -0.19% 17,475.7 -1.74%
-15%
4/18/2022 549.2 0.71% 17,171.9 -1.74%
4/25/2022 546.1 -0.56% 17,102.6 -0.40% VARUN BEVERAGES LTD Returns NIFTY Returns
5/2/2022 501.1 -8.25% 16,411.3 -4.04%
5/9/2022 491.3 -1.96% 15,782.2 -3.83%
5/16/2022 493.8 0.51% 16,266.2 3.07%
5/23/2022 488.3 -1.12% 16,352.5 0.53%
5/30/2022 504.2 3.27% 16,584.3 1.42%
6/6/2022 492.7 -2.28% 16,201.8 -2.31%
6/13/2022 475.4 -3.51% 15,293.5 -5.61%
6/20/2022 500.1 5.19% 15,699.3 2.65%
6/27/2022 501.6 0.29% 15,752.0 0.34%
7/4/2022 533.6 6.39% 16,220.6 2.97%
7/11/2022 538.0 0.82% 16,049.2 -1.06%
7/18/2022 565.4 5.10% 16,719.4 4.18%
7/25/2022 575.8 1.85% 17,158.3 2.62%
8/1/2022 570.9 -0.85% 17,397.5 1.39%
8/8/2022 573.3 0.42% 17,698.2 1.73%
8/15/2022 578.9 0.96% 17,758.4 0.34%
8/22/2022 563.9 -2.59% 17,558.9 -1.12%
8/29/2022 562.6 -0.23% 17,539.4 -0.11%
9/5/2022 566.7 0.74% 17,833.3 1.68%
9/12/2022 538.6 -4.96% 17,530.8 -1.70%
9/19/2022 560.5 4.05% 17,327.3 -1.16%
9/26/2022 564.8 0.77% 17,094.3 -1.34%
10/3/2022 532.5 -5.72% 17,314.7 1.29%
10/10/2022 523.8 -1.63% 17,185.7 -0.74%
10/17/2022 530.3 1.24% 17,576.3 2.27%
10/24/2022 543.2 2.44% 17,786.8 1.20%
10/31/2022 549.6 1.17% 18,117.2 1.86%
11/7/2022 547.7 -0.35% 18,349.7 1.28%
11/14/2022 543.1 -0.83% 18,307.7 -0.23%
11/21/2022 551.1 1.47% 18,512.8 1.12%
11/28/2022 585.4 6.22% 18,696.1 0.99%
12/5/2022 592.9 1.29% 18,496.6 -1.07%
12/12/2022 574.1 -3.17% 18,269.0 -1.23%
12/19/2022 560.3 -2.40% 17,806.8 -2.53%
12/26/2022 556.0 -0.78% 18,105.3 1.68%
1/2/2023 547.4 -1.53% 17,859.4 -1.36%
1/9/2023 538.4 -1.66% 17,956.6 0.54%
1/16/2023 560.5 4.10% 18,027.7 0.40%
1/23/2023 556.6 -0.70% 17,604.3 -2.35%
1/30/2023 528.5 -5.04% 17,854.1 1.42%
2/6/2023 527.2 -0.24% 17,856.5 0.01%
2/13/2023 529.3 0.39% 17,944.2 0.49%
2/20/2023 529.7 0.07% 17,465.8 -2.67%
2/27/2023 529.6 -0.02% 17,594.3 0.74%
3/6/2023 524.8 -0.91% 17,412.9 -1.03%
3/13/2023 530.9 1.17% 17,100.1 -1.80%
3/20/2023 531.2 0.05% 16,945.1 -0.91%
3/27/2023 539.6 1.58% 17,359.8 2.45%
4/3/2023 520.8 -3.49% 17,599.2 1.38%
4/10/2023 522.0 0.24% 17,828.0 1.30%
4/17/2023 520.0 -0.38% 17,624.1 -1.14%
4/24/2023 527.7 1.48% 18,065.0 2.50%
5/1/2023 500.1 -5.24% 18,069.0 0.02%
5/8/2023 513.3 2.64% 18,314.8 1.36%
5/15/2023 514.0 0.14% 18,203.4 -0.61%
5/22/2023 536.8 4.43% 18,499.3 1.63%
5/29/2023 551.7 2.79% 18,534.1 0.19%
6/5/2023 544.6 -1.30% 18,563.4 0.16%
6/12/2023 565.3 3.81% 18,826.0 1.41%
6/19/2023 557.8 -1.32% 18,665.5 -0.85%
6/26/2023 567.3 1.70% 19,189.1 2.80%
7/3/2023 566.6 -0.13% 19,331.8 0.74%
7/10/2023 580.8 2.50% 19,564.5 1.20%
7/17/2023 559.7 -3.63% 19,745.0 0.92%
7/24/2023 578.7 3.40% 19,646.1 -0.50%
7/31/2023 566.8 -2.06% 19,517.0 -0.66%
8/7/2023 560.3 -1.15% 19,428.3 -0.45%
8/14/2023 562.6 0.42% 19,310.2 -0.61%
8/21/2023 555.2 -1.32% 19,265.8 -0.23%
8/28/2023 550.5 -0.84% 19,435.3 0.88%
9/4/2023 564.2 2.48% 19,819.9 1.98%
9/11/2023 562.6 -0.28% 20,192.3 1.88%
9/18/2023 558.4 -0.74% 19,674.3 -2.57%
9/25/2023 548.8 -1.73% 19,638.3 -0.18%
10/2/2023 544.3 -0.81% 19,653.5 0.08%
10/9/2023 536.1 -1.52% 19,751.1 0.50%
10/16/2023 522.1 -2.61% 19,542.7 -1.06%
10/23/2023 521.9 -0.05% 19,047.3 -2.53%
10/30/2023 532.7 2.09% 19,230.6 0.96%
11/6/2023 530.6 -0.40% 19,425.3 1.01%
11/13/2023 540.7 1.90% 19,731.8 1.58%
11/20/2023 537.3 -0.62% 19,794.7 0.32%
11/27/2023 541.2 0.71% 20,267.9 2.39%
12/4/2023 547.5 1.17% 20,969.4 3.46%
12/11/2023 539.7 -1.42% 21,456.7 2.32%
12/18/2023 529.3 -1.93% 21,349.4 -0.50%
12/25/2023 557.2 5.27% 21,731.4 1.79%
1/1/2024 569.0 2.13% 21,710.8 -0.09%
1/8/2024 549.7 -3.40% 21,647.2 -0.29%
 Foootball Field Analysis

Equity Value Per Share

700.00

600.00

500.00

400.00

300.00

200.00

100.00

0.00
Comp DCF Bear DCF Base DCF Bull 52week H/L

Foootball Field Analysis

OpenLow Low OpenHigh High
Comp 549.2 549.2 577.8 577.8
DCF Bear 174.7 174.7 367.1 367.1
DCF Base 138 138 214.8 214.8
DCF Bull 125.6 125.6 180 180
52week H/L 503.6 503.6 597.1 597.1
Dabur Industries Ltd.
Comparable Company Valuation
*Figures in crores
Market Data Financials Valuation
Share Shares Equity Enterprise EV/
Company Ticker Price Outstanding Value Net Debt Value Revenue EBITDA Net Income Revenue EV/ EBITDA P/E
Dabur India DABUR 550 177.20 97,407 1,163 98,485 12,055 2,733 1,733 8.2x 36.0x 56.2x
Godrej Consumer GODREJCP 1,156 102.28 118,185 2,884 120,911 13,850 2,950 1,750 8.7x 41.0x 67.5x
Emami EMAMILTD 525 44.04 23,110 -77 23,033 3,509 956 691 6.6x 24.1x 33.4x
Jyothy Labs - 506 36.72 18,564 -239 18,168 2,649 480 327 6.9x 37.9x 56.8x
Britannia Inds. BRITANNIA 5,151 24.09 124,090 2,580 126,617 16,664 3,401 2,532 7.6x 37.2x 49.0x
Varun Beverages VBL 1,265 129.92 164,355 3,441 167,771 15,589 3,577 2,040 10.8x 46.9x 80.6x
Gillette India - 6,801 3.26 22,173 -456 21,710 2,525 568 362 8.6x 38.2x 61.3x

High 10.8x 46.9x 80.6x

Average 8.2x 37.3x 57.8x
Median 8.2x 37.9x 56.8x
Low 6.6x 24.1x 33.4x

Dabur India Comparable Valuation

Implied Enterpirse Value 98485 103541 99,585
Net Debt 1,163 1,163 1,163
Implied Market Value 97,322 102,377 98,422
Shares Outstanding 177.20 177.20 177.20
Implied Value Per Share 549.2 577.8 555.4

*Source: The Valuation School, Screener.in

Overvalued Undervalued Undervalued
COMPANY NAME VARUN BEVERAGES LTD
LATEST VERSION 2.10 PLEAS
CURRENT VERSION 2.10

META
Number of shares 325.00
Face Value 2
Current Price 628.75
Market Capitalization 204346.52

PROFIT & LOSS

Report Date Dec-14 Dec-15 Dec-16 Dec-17
Sales 2502.4 3394.14 3861.18 4003.54
Raw Material Cost 1375.92 1745.46 1769.74 1883.28
Change in Inventory -0.19 28.99 31.86 73.22
Power and Fuel 113.62 131.15 156.22 160.04
Other Mfr. Exp 95.36 131.77 154.66 154.49
Employee Cost 216.8 323.9 421.45 463.18
Selling and admin 298.33 425.55 542.99 525.92
Other Expenses 15.29 22.83 38.47 51.52
Other Income 14.3 35.7 26.77 13.86
Depreciation 210.06 317.41 322.21 346.64
Interest 187.36 170.15 434.74 214.59
Profit before tax 3.77 190.61 79.33 290.96
Tax 24.81 78.85 31.3 76.9
Net profit -20.16 113.04 42.38 210.15
Dividend Amount 45.65

EBITDA 402.07 679.45 830.63 848.28

EBIT

Quarters
Report Date Jun-22 Sep-22 Dec-22 Mar-23
Sales 4954.82 3176.62 2214.24 3892.98
Expenses 3704.2 2477.63 1906.75 3094.97
Other Income 10.48 10.62 9.25 10.14
Depreciation 153.07 153.14 179.66 172.2
Interest 46.4 45.29 47.48 62.57
Profit before tax 1061.63 511.18 89.6 573.38
Tax 259.61 115.69 8.08 134.8
Net profit 787.44 381.04 74.75 429.07
Operating Profit 1250.62 698.99 307.49 798.01
BALANCE SHEET
Report Date Dec-14 Dec-15 Dec-16 Dec-17
Equity Share Capital 133.77 133.77 182.31 182.59
Reserves 9.31 90.51 1511.28 1586.84
Borrowings 2615.31 2527.35 2215.4 2653.7
Other Liabilities 533.25 1679.62 915.43 852.48
Total 3291.64 4431.25 4824.42 5275.61
Net Block 2354.87 3495.57 3715.5 3980.52
Capital Work in Progress 24.75 37.91 95.58 145.44
Investments 303.74 3.27 6.87 8.23
Other Assets 608.28 894.5 1006.47 1141.42
Total 3291.64 4431.25 4824.42 5275.61
Receivables 97.29 97.91 131.35 150.25
Inventory 289.25 424.66 489.93 438.89
Cash & Bank 34.41 58.07 65.7 94.46
No. of Equity Shares 133766165 133766165 182312525 182586940
New Bonus Shares
Face value 10 10 10 10

CASH FLOW:
Report Date Dec-14 Dec-15 Dec-16 Dec-17
Cash from Operating Activity 430.86 554.79 825.78 619.76
Cash from Investing Activity -499.96 -299.67 -1047.8 -745.95
Cash from Financing Activity 57.73 -236 230.23 158.63
Net Cash Flow -11.37 19.12 8.21 32.45

PRICE: 22.55 38.71

DERIVED:
Adjusted Equity Shares in Cr 225.72 225.72 307.67 308.15

Market Cap - - 6,937.96 11,928.49

+Debt 2,615.31 2,527.35 2,215.40 2,653.70
-Cash 34.41 58.07 65.70 94.46
EV 2,580.90 2,469.28 9,087.66 14,487.73

EV/Ebitda 6.42 3.63 10.94 17.08

EV/Sales 1.03 0.73 2.35 3.62
PB ratio - - 4.10 6.74
 PLEASE DO NOT MAKE ANY CHANGES TO THIS SHEET

Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23

5105.26 7129.58 6450.14 8823.23 13173.14 16042.58
2306.5 3363.29 2781.1 4134.38 6605.66 7489.16
62.4 143.86 17.16 99.72 344.51 84.27
194.8 279.06 267 329.93 479.22 550.29
191.58 245.4 264.33 328.35 472.05 537.15
583.27 811.58 890.1 1015.43 1235.2 1447.18
1692.78 2369.99 2091.63 1358.89 1777.38 2253.82
-837.07 -1258.2 -1041.82 62.02 85.14 132.51
5.87 46.89 -30.01 50.89 -18.08 -4.87
385.07 488.63 528.7 531.26 617.19 680.91
222.8 324.31 293.74 206.97 204.09 291.6
433.8 696.27 362.51 1006.61 2023.64 2739.36
133.93 224.07 5.23 260.55 473.53 637.55
292.84 468.98 329 694.05 1497.43 2055.92
45.66 72.17 72.17 108.26 227.34 324.8

1,034.64 1,505.99 1,156.67 1,692.83 2,792.24 3,665.98

1,017.36 627.97 1,161.57 2,175.05 2,985.07

Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24

5611.4 3870.52 2667.69 4317.31 7196.86 4804.68
4100.62 2988.8 2249.4 3328.7 5206.18 3653.65
41.6 18.51 9.32 8.35 44.03 24.25
171.93 170.81 165.97 187.52 242.48 256.61
69.37 62.5 73.66 93.69 129.16 118.54
1311.08 666.92 187.98 715.75 1663.07 800.13
305.66 152.86 44.22 167.77 401.24 171.3
993.81 501.07 131.97 537.27 1252.6 619.61
1510.78 881.72 418.29 988.61 1990.68 1151.03
Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
182.64 288.69 288.69 433.03 649.55 649.61
1815.86 3039.73 3235.31 3646.88 4452.83 6286.89
2807.87 3417.18 3216.13 3386.76 3883.81 5431.31
1191.64 1629.98 1707.24 2112.81 2632.05 2819.37
5998.01 8375.58 8447.37 9579.48 11618.24 15187.18
4386.97 6479.04 6408.62 6310.78 6932.22 8409.17
352.36 63.82 66.82 496.61 606.63 1922.22
11.24 0.01 21.08
1247.44 1832.72 1971.93 2772.09 4079.38 4834.71
5998.01 8375.58 8447.37 9579.48 11618.24 15187.18
128.03 172.56 241.8 221.25 299.34 359.39
578.4 881.51 928.8 1448.09 1993.89 2150.53
93.48 171.08 190.05 336.62 285.27 459.86
182641940 288688720 288688720 433033080 649549620 1299214976
91,327,613.00
10 10 10 10 10 5

Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23

999.78 1307.6 1011.99 1231.42 1790.03 2390.78
-937.4 -2319.9 -471.68 -1007.55 -1768.51 -3287.8
-84.39 1107.34 -573.72 -177.68 -17.94 984.9
-22.01 95.03 -33.41 46.19 3.58 87.88

46.49 62.99 81.43 118.44 264.51 494.76

308.21 324.77 324.77 324.78 324.78 324.80

14,328.68 20,457.26 26,446.02 38,466.94 85,907.56 160,698.05

2,807.87 3,417.18 3,216.13 3,386.76 3,883.81 5,431.31
93.48 171.08 190.05 336.62 285.27 459.86
17,043.07 23,703.36 29,472.10 41,517.08 89,506.10 165,669.50

16.47 15.74 25.48 24.53 32.06 45.19

3.34 3.32 4.57 4.71 6.79 10.33
7.17 6.15 7.50 9.43 16.84 23.17