⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
VBL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | VBL | Market Cap | 1,58,784 Cr. | Current Price | 469 ₹ | High / Low | 593 ₹ |
| Stock P/E | 60.5 | Book Value | 53.4 ₹ | Dividend Yield | 0.21 % | ROCE | 23.8 % |
| ROE | 20.1 % | Face Value | 2.00 ₹ | DMA 50 | 480 ₹ | DMA 200 | 489 ₹ |
| Chg in FII Hold | -1.62 % | Chg in DII Hold | 1.78 % | PAT Qtr | 577 Cr. | PAT Prev Qtr | 1,160 Cr. |
| RSI | 41.0 | MACD | -3.75 | Volume | 26,18,877 | Avg Vol 1Wk | 59,56,542 |
| Low price | 419 ₹ | High price | 593 ₹ | PEG Ratio | 0.90 | Debt to equity | 0.02 |
| 52w Index | 28.6 % | Qtr Profit Var | 17.3 % | EPS | 7.76 ₹ | Industry PE | 45.4 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT dropped from 1,160 Cr. to 577 Cr., showing sequential weakness, though YoY profit variation is positive at 17.3%.
- Margins & Returns: Strong ROCE (23.8%) and ROE (20.1%) highlight efficient capital usage and profitability.
- Debt Ratios: Debt-to-equity at 0.02 indicates negligible leverage, ensuring financial stability.
- Cash Flows: Consistent profitability and low debt suggest healthy operating cash flows.
💹 Valuation Indicators
- P/E Ratio: 60.5 vs industry average of 45.4 → trades at a premium.
- P/B Ratio: Current Price / Book Value ≈ 8.8 → significantly above fair value.
- PEG Ratio: 0.90 → indicates valuation is reasonable relative to growth.
- Intrinsic Value: Current price (469 ₹) appears stretched compared to book value, but justified by strong returns.
🏢 Business Model & Competitive Advantage
- Leading beverage bottler with exclusive franchise rights, ensuring strong market positioning.
- High efficiency ratios (ROCE, ROE) provide competitive edge.
- Low debt enhances resilience against market volatility.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 440 ₹ – 460 ₹, near support levels and below DMA 50.
- Long-Term Holding: Suitable for growth-oriented investors; strong fundamentals justify holding despite premium valuation.
✅ Positive
- High ROCE and ROE indicating strong efficiency.
- Low debt-to-equity ratio ensures financial safety.
- DII holdings increased (+1.78%), reflecting domestic institutional confidence.
⚠️ Limitation
- Premium valuation compared to industry peers.
- Sequential PAT decline from 1,160 Cr. to 577 Cr. shows earnings pressure.
- FII holdings decreased (-1.62%), showing cautious foreign sentiment.
📉 Company Negative News
- Stock trading below both 50 DMA (480 ₹) and 200 DMA (489 ₹), indicating weak momentum.
- RSI at 41.0 and negative MACD (-3.75) suggest bearish technical outlook.
📈 Company Positive News
- Quarterly profit variation of 17.3% indicates YoY growth despite sequential decline.
- Strong domestic institutional inflows support confidence in fundamentals.
🏭 Industry
- Industry P/E at 45.4 indicates sector trades at lower multiples.
- Beverage sector benefits from rising consumption and brand loyalty.
- VBL commands premium due to franchise rights and strong profitability.
🔎 Conclusion
VBL demonstrates strong fundamentals with high efficiency and low debt, but trades at a premium compared to industry peers. Entry is advisable near 440 ₹ – 460 ₹ for long-term investors, with staggered accumulation to mitigate valuation risks. Overall, the company remains financially healthy and strategically positioned, though short-term technicals suggest caution.
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