I am talking about the one particular company which is into consumer staples category & this is the franchise bottler of most renowned brand in the world, i.e. PepsiCo.
Company is Varun Beverage Ltd (VBL), this company has turned 1 lakh into 36 lakhs & that too within a span of 5 years. VBL has turned out to be a emerging multibagger in India. VBL has generated 104% CAGR throughout the period of 5 years (CAGR including the share split)
VBl has generated a returns of 2138% since it’s IPO inception in 2016. This is the perfect example of compounding that company has generated the returns.
If you would have invested 1 lakh in VBL in 2019 at the share price of 140 rupees
VBL has split their share 4 times in 5 year which is really phenomenal
| Sr no | Date | Ratio | Share Price | No of shares |
| 1 | 25-Jul-19 | 1:2 | 140 | 714 |
| 2 | 10-Jun-21 | 1:2 | 263 | 1071 |
| 3 | 06-Jun-22 | 1:2 | 385 | 1607 |
| 4 | 15-Jun-23 | 1:2 | 804 | 2411 |
No of share bought in 2019 for 1 lakh = 714
After holding for the 5 years, no of shares would have been 2411
current VBL share price = ₹ 1510 (26 Feb 2024)
Total Value of shares = No of shares * Current share price
= 2411* 1510
= 36,40,610
This is how the value of 1 lakh invested in 2019 would have become 36.40 lakhs in Feb 2024
It has been associated with PepsiCo since the 1990s and is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and packaged water sold under trademarks owned by PepsiCo.
PepsiCo brands produced and sold by the company include Pepsi, Seven-up, Mirinda Orange, Mountain Dew, Tropicana Juices and many more.
Image Source- Tijori Finance
| Market Cap | 1,99,886 Cr |
| Current Price | ₹ 1538 |
| High/Low | ₹ 1,560 / 633 |
| Stock PE | 97.2 |
| Book Value | ₹ 53.4 |
| ROCE | 27.8 % |
| ROE | 34.2 % |
| Sales Growth 5 years | 25.7 % |
| Debt To Equity | 0.78 |
| Dividend Yield | 0.08 % |
| Mar-21 | Dec-23 | Change | |
| Promoters | 66.40% | 63.09% | -3.31% |
| FIIs | 20.28% | 26.58% | 6.30% |
| DIIs | 5.90% | 3.58% | -2.32% |
| Public | 7.42% | 6.74% | -0.68% |
If we look at the shareholding pattern then we can see that Promoters & DII’s offloaded their shares & whereas DII’s have raise their stake by 6.3% in the company within a span of 2 years which is a really good sign.
Above is the financial trend for 5 years, Revenue has increased by 125% whereas Net Profit has increased by 340%, as the fundamentals of the company are really strong & company has well established supply chain network all over the India which will make them eventually to cater to more customers.
So considering the CAGR for the past few years
| CAGR | Returns | |
| 1 Year | 138.75 % | 138.75 % |
| 5 years | 66.46 % | 1201.91 % |
| 8 years (since IPO) | 48.46 % | 2138.73 % |
as per the past 5 years record VBL has given 4 times share split, considering this fact VBL will continue to split the shares every alternate years most probably. Obviously VBL has became a large cap, so the returns will be comparatively lower as compared to the past year returns.
Considering the Good & better scenario for the returns (This is assumption)
| Year | Share Price Target |
| 2024 | 1534 |
| 2025 | 1918 |
| 2026 | 2397 |
| 2027 | 2996 |
| 2028 | 3745 |
| 2029 | 4681 |
| 2030 | 5852 |
| 2031 | 7315 |
| 2032 | 9143 |
| 2033 | 11429 |
| 2034 | 14286 |
| 2035 | 17858 |
| 2036 | 22323 |
| 2037 | 27903 |
| 2038 | 34879 |
| 2039 | 43599 |
| Year | Share Price Target |
| 2024 | 1534 |
| 2025 | 1994 |
| 2026 | 2592 |
| 2027 | 3370 |
| 2028 | 4381 |
| 2029 | 5696 |
| 2030 | 7404 |
| 2031 | 9626 |
| 2032 | 12513 |
| 2033 | 16267 |
| 2034 | 21147 |
| 2035 | 27492 |
| 2036 | 35739 |
| 2037 | 46461 |
| 2038 | 60399 |
| 2039 | 78519 |
Even if it is good or better returns but for sure VBL is going to make you wealthy if you have patience to hold such precious company.
If you are a wise Investor then you will not be looking for the share to go down & then invest. Please make your decision wisely as you are going to drink Pepsi, Seven-up, Mirinda Orange, Mountain Dew, Tropicana Juices as the product is really good & history has proven it.
Invest only in what you know (Invest only in those companies for which you have used the product)
Disclaimer-
This article is a complete guide about Varun Beverage Ltd
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, this information will help you in your further investment.
If you have any further queries, please comment below. We will be happy to answer all your questions.
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