VBL
Varun Beverages
Each stock's 10,000-path forecast, rendered as light.
Varun Beverages (VBL) Stock Analysis & Case Study
Is VBL a good buy? The data-driven verdict.
Varun Beverages (VBL) trades at ₹513,on the numbers it tread carefully, a Downstox Snapshot Score of 39/100.
On the numbers, Varun Beverages (VBL) tread carefully, a Downstox Snapshot Score of 39/100, weighing expensive at 54.6× earnings, ROE of 16.2%, a 34% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 2027–2031.
Last updated . Data snapshot for research, not investment advice.
VBL fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield
Is VBL overvalued? VBL P/E vs its FMCG
VBL's P/E of 54.6× sits above the FMCG peer median of 49.7×, so on earnings it screens in line with peers, while its 0.29% dividend yield is below the peer median of 1.73%.
VBL share price target 2027, 2028, 2029, 2030, 2031, a probability view
Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 2.0y of VBL history (-9%/yr drift, 33%/yr volatility).
| Year | Low (P10) | Median target (P50) | High (P90) | Upside vs today |
|---|---|---|---|---|
| VBL 2027 | ₹301 | ₹460 | ₹702 | -13% |
| VBL 2028 | ₹217 | ₹398 | ₹734 | -25% |
| VBL 2029 | ₹166 | ₹348 | ₹728 | -34% |
| VBL 2030 | ₹130 | ₹301 | ₹694 | -43% |
| VBL 2031 | ₹103 | ₹259 | ₹662 | -51% |
Median (P50) is the central estimate; the P10–P90 band is the 80% confidence range. Probabilities, not promises.
What is the probability VBL goes up, or doubles?
The bull case for VBL
- A healthy 16.2% return on equity.
- Strong ROCE (19.7%) shows the core business earns well above its cost of capital.
- Upside scenario: the model's optimistic (P90) 3-year path reaches ₹728.
The bear case & risks
- A rich 54.6× P/E leaves a thin margin of safety if growth slows.
- A steep 8.9× price-to-book means most of the value is intangible/expectations, not assets on the books.
- The probability model is cautious 12 months out, only a 34% chance of finishing above today's price.
- Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹166.
VBL volatility & expected range, how bumpy is the ride?
Over the last 2.0 years VBL compounded at -9%/year with annualized volatility of 33%. That volatility implies a 1-year 80% range of ₹301–₹702, the honest backbone behind any single price target.
VBL price forecast, the full 60-month probability fan
VBL price probability fan
Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.
Probability of key outcomes
What are the odds VBL hits common targets within the simulated horizon?
Full multi-horizon detail on the VBL price target & forecast page.
VBL Piotroski F-Score: 4/9, how financially strong is it?
The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. VBL scores 4/9,mixed financial health.
VBL MTF margin & leverage, Upstox, Zerodha, Groww, Dhan
Margin Trading Facility lets you buy VBL with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):
| Broker | Margin required | Approx. leverage |
|---|---|---|
| Upstox | 30.0% | 3.3× |
| Zerodha | 25.6% | 3.9× |
| Groww | 25.6% | 3.9× |
| DhanCHEAPEST | 23.0% | 4.3× |
Compare every broker on the VBL MTF page.
VBL vs peers,FMCG comparison
| Stock | P/E | Div yield | Market cap |
|---|---|---|---|
| VBL (this stock) | 54.6× | 0.29% | ₹1.74L Cr |
| ITC | 17.4× | 4.98% | ₹3.64L Cr |
| HINDUNILVR | 33.7× | 1.88% | ₹5.13L Cr |
| NESTLEIND | 79.4× | 0.86% | ₹2.70L Cr |
| TATACONSUM | 71.7× | 0.90% | ₹1.10L Cr |
| BRITANNIA | 49.7× | 1.73% | ₹1.26L Cr |
| DABUR | 39.3× | 1.95% | ₹74,879 Cr |
About Varun Beverages: sector, index & market-cap context
Varun Beverages (VBL) is a large-cap NSE-listed company in the FMCG sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹1.74L Cr. See more Nifty 50 stocks.
How the VBL Snapshot Score & forecast are built
The Downstox Snapshot Score is a transparent, rules-based read of Varun Beverages's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.
This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.
VBL analysis, FAQs
Is Varun Beverages (VBL) a good buy?
On the numbers, Varun Beverages (VBL) tread carefully, a Downstox Snapshot Score of 39/100, weighing expensive at 54.6× earnings, ROE of 16.2%, a 34% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.
Is VBL overvalued or undervalued?
VBL trades at 54.6× earnings versus a peer median of 49.7×, so it screens richer than its FMCG peers.
What is the VBL share price target for 2031?
VBL's probability-weighted 2031 median target is ₹259, with an 80% range of ₹103–₹662 (10,000-path Monte-Carlo).
What is the probability VBL doubles in 5 years?
The modelled probability of VBL reaching ₹1,059 (2×) within 5 years is 3%.
What is the bull case for VBL?
A healthy 16.2% return on equity. Strong ROCE (19.7%) shows the core business earns well above its cost of capital.
What are the risks in VBL?
A rich 54.6× P/E leaves a thin margin of safety if growth slows. A steep 8.9× price-to-book means most of the value is intangible/expectations, not assets on the books. The probability model is cautious 12 months out, only a 34% chance of finishing above today's price.