FII holding at five-quarter low, stock down 31%: Should Varun Beverages be on your shopping list?

Shares of Varun Beverages have slipped 30% in the last five quarters with FII holding in the PepsiCo bottler, falling to its lowest since the December 2024 quarter. FIIs stake in the March 2026 quarter fell to 19.5% against the foreign holding stake of 25.3% in the December 2024 quarter. 

Varun Beverages investors, who have placed bets on the stock in two years have lost 22%. The stock is down nearly 21% in a year.    Varun Beverages investors are also facing rising competition, upcoming IPO of Coca-Cola Beverages India, along with rising operating costs and concerns regarding overvaluation.

Varun Beverages stock has a beta of 1.06%, indicating high volatility in a year. 

The FMCG stock trades near the 52 week low of Rs 381 reached on March 23, 2026.  In the current session, Varun Beverages stock was trading on a flat note at Rs 430.80 against the previous close of Rs 432.60. A total of 4.72 lakh shares of the firm changed hands, amounting to a turnover of Rs 20.19 crore. 

Jigar S Patel from Anand Rathi said, "Support will be Rs 410 and resistance Rs 440. A decisive move above the Rs 440 level may trigger a further upside of Rs 450. The expected trading range will be between Rs 410 and Rs 450 in the short-term."

Brokerage Motilal Oswal has a price target of Rs 550 on the Varun Beverages stock. The brokerage house expects the firmto deliver  double-digit domestic volume growth in CY26. MOSL's  optimism emanates from strategic innovation, capacity investments, and premiumisation initiatives, which position the firm to deliver double-digit domestic volume growth in CY26. The brokerage expects margins to stabilise near current levels despite near-term realisation pressures.

Ambit Capital has a price target of Rs 501 on the stock. The brokerage sees strong volume growth in beverages, expansion across India and Africa, and improving profitability led by scale and backward integration.

Ambit expects strong revenue growth in the coming years, backed by an expanding product range that includes energy drinks, hydration solutions, juices, and initial steps into snacks and alcoholic beverages. 

Ambit believes the core business trajectory remains solid, with risks primarily associated with input cost pressures and competitive pricing challenges.

Sharekhan has a price target of Rs 580 on the VBL stock. According to the brokerage, strong demand and expansion support long-term growth.

Varun Beverages is a beverage company. It operates franchisee of PepsiCo. The company produces and distributes a range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo.