VBL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | VBL | Market Cap | 1,73,749 Cr. | Current Price | 514 ₹ | High / Low | 544 ₹ |
| Stock P/E | 62.4 | Book Value | 55.5 ₹ | Dividend Yield | 0.29 % | ROCE | 19.1 % |
| ROE | 14.6 % | Face Value | 2.00 ₹ | DMA 50 | 454 ₹ | DMA 200 | 469 ₹ |
| Chg in FII Hold | -0.80 % | Chg in DII Hold | 0.79 % | PAT Qtr | 788 Cr. | PAT Prev Qtr | 261 Cr. |
| RSI | 70.3 | MACD | 25.2 | Volume | 75,14,844 | Avg Vol 1Wk | 1,79,56,204 |
| Low price | 381 ₹ | High price | 544 ₹ | PEG Ratio | 2.45 | Debt to equity | 0.02 |
| 52w Index | 81.6 % | Qtr Profit Var | 16.2 % | EPS | 8.24 ₹ | Industry PE | 45.3 |
📊 Financials: VBL demonstrates strong scale with a large market cap (₹1,73,749 Cr.) and consistent profitability. ROCE (19.1%) and ROE (14.6%) are healthy, supported by very low debt (0.02). Quarterly PAT surged from ₹261 Cr. to ₹788 Cr., reflecting strong operational performance. EPS of ₹8.24 is modest relative to valuation.
💹 Valuation: Current P/E of 62.4 is significantly above industry average (45.3), suggesting stretched valuations. PEG ratio of 2.45 indicates growth is somewhat priced in. P/B ratio (~9.3) is elevated. Dividend yield of 0.29% is minimal, offering limited income support.
🏢 Business Model & Advantage: VBL operates in beverages (Pepsi bottling), benefiting from strong brand equity, distribution scale, and resilient demand. Competitive advantage lies in exclusive franchise rights and operational efficiency.
📈 Entry Zone: Attractive entry near ₹440–₹470 (close to DMA 200 support). Current price (₹514) is above fair entry, with resistance at ₹540–₹545.
⏳ Long-Term Holding: Suitable for 3–5 year horizon given strong fundamentals and growth momentum. Partial profit booking advised near resistance levels to balance valuation risks.
Positive
- Strong ROCE (19.1%) and ROE (14.6%)
- Low debt-to-equity (0.02)
- Quarterly PAT growth (+16.2%)
- Large market cap and strong brand presence
Limitation
- High P/E (62.4 vs industry 45.3)
- PEG ratio of 2.45 signals expensive growth
- Dividend yield of only 0.29%
- RSI at 70.3 indicates overbought conditions
Company Negative News
- FII holdings decreased (-0.80%), showing reduced foreign investor confidence
Company Positive News
- Strong quarterly PAT growth (+16.2%)
- DII holdings increased (+0.79%), reflecting domestic institutional support
Industry
- Industry P/E at 45.3 reflects moderate sector valuation
- VBL trades at a premium, supported by strong brand and growth momentum
Conclusion
VBL is fundamentally strong with robust profitability, low leverage, and strong growth momentum, making it suitable for long-term investors. Entry is ideal near ₹440–₹470. Current holders should maintain positions for 3–5 years, with partial exits near ₹540–₹545 to capture gains while managing valuation risks.