⚠ 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: 3.7
| Stock Code | VBL | Market Cap | 1,40,356 Cr. | Current Price | 415 ₹ | High / Low | 568 ₹ |
| Stock P/E | 54.6 | Book Value | 55.5 ₹ | Dividend Yield | 0.24 % | ROCE | 19.1 % |
| ROE | 14.6 % | Face Value | 2.00 ₹ | DMA 50 | 450 ₹ | DMA 200 | 476 ₹ |
| Chg in FII Hold | -1.62 % | Chg in DII Hold | 1.78 % | PAT Qtr | 261 Cr. | PAT Prev Qtr | 577 Cr. |
| RSI | 36.9 | MACD | -13.8 | Volume | 70,08,926 | Avg Vol 1Wk | 82,30,189 |
| Low price | 400 ₹ | High price | 568 ₹ | PEG Ratio | 2.14 | Debt to equity | 0.02 |
| 52w Index | 8.75 % | Qtr Profit Var | 25.1 % | EPS | 7.91 ₹ | Industry PE | 47.8 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT fell sharply from 577 Cr. to 261 Cr. (-25.1%), showing earnings pressure. EPS at 7.91 ₹ is modest.
- Margins & Returns: ROCE at 19.1% and ROE at 14.6% indicate decent efficiency but not industry-leading.
- Debt: Debt-to-equity ratio of 0.02 reflects negligible leverage, ensuring balance sheet strength.
- Cash Flow: Supported by low debt and consistent operations, though profitability trend is weakening.
💹 Valuation
- P/E Ratio: 54.6 vs Industry PE of 47.8 → Overvalued relative to peers.
- P/B Ratio: Current Price 415 ₹ vs Book Value 55.5 ₹ → High premium.
- PEG Ratio: 2.14 → Moderately expensive relative to growth.
- Intrinsic Value: Current price trades above fair value, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Strong presence in beverages with exclusive bottling rights.
- Brand strength and distribution network provide competitive edge.
- Low debt enhances resilience, but profitability volatility is a concern.
📈 Technicals & Entry Zone
- RSI at 36.9 → Near oversold territory, potential accumulation zone.
- MACD negative (-13.8) → Weak momentum, short-term caution advised.
- Entry Zone: Attractive accumulation between 400–420 ₹.
- Long-Term Holding: Suitable for investors seeking brand-backed stability, but valuation risks remain.
✅ Positive
- Strong brand presence and distribution network.
- Low debt-to-equity ratio ensures financial stability.
- DII holdings increased by 1.78%, showing domestic institutional support.
⚠️ Limitation
- High P/E ratio compared to industry peers.
- Quarterly profit decline (-25.1%) raises concerns.
- Weak technical momentum with negative MACD.
📉 Company Negative News
- Quarterly PAT dropped significantly from 577 Cr. to 261 Cr.
- FII holdings decreased by 1.62%, showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased by 1.78%, reflecting strong domestic institutional support.
- 52-week performance up 8.75%, showing resilience despite recent weakness.
🏭 Industry
- Industry PE at 47.8 suggests sector trades at lower multiples.
- VBL commands premium valuation due to brand strength, but earnings volatility limits confidence.
🔎 Conclusion
VBL demonstrates strong brand-backed fundamentals with low debt and a resilient distribution network. However, valuations are stretched, and recent profitability decline raises caution. Entry is favorable near 400–420 ₹ for long-term investors, but short-term momentum remains weak. Suitable as a long-term hold for those confident in the brand’s strength, though valuation and earnings risks must be considered.