Varun Beverages share at Rs 500 or Rs 650? Stock up 12% in 3 days
On Wednesday, the VBL stock rose 4.25 per cent to hit a high of Rs 534 on BSE. Despite this, the scrip is down 20 per cent year-to-date.
- Jul 30, 2025,
- Updated Jul 30, 2025 10:46 AM IST
Varun Beverages Ltd rallied 4 per cent in Wednesday's trade, taking its three-day rally to 12 per cent. The PepsiCo bottler's cost efficiency-led margin expansion drove earnings beat in the June quarter, even as its India volumes remained soft.
On Wednesday, the stock rose 4.25 per cent to hit a high of Rs 534 on BSE. Despite this, the scrip is down 20 per cent year-to-date.
JM Financial said Varun Beverages’ Q2 earnings print -- the company follows calendar as accounting year, was ahead of its estimate as weakness in domestic volumes was offset by strong delivery on margins.
"India volumes declined by 7 per cent (JMFe: 4 per cent) partially offset by better volumes & realisation in International business, resulting in 3 per cent miss on consolidated sales," it said.
Analysts were largely surprised by stable gross margin and superior execution on extracting cost efficiencies in India business, and better realisation and margin expansion in International business, which resulted in EBitda beat of 9 per cent.
Factoring in a volume miss, JM cut earnings by 4 per cent and suggested a target of Rs 595 on VBL.
MOFSL said VBL delivered a stable performance despite the challenges posed by unseasonal rains during the quarter. Going ahead, it expects VBL to maintain its earnings momentum, aided by a scale-up in the international market, strengthening on-ground execution, and an enhanced product visibility with an increase in the number of visi coolers. MOFSL also sees expanding product portfolio as a reason for its optimism.
This brokerage values the stock at Rs 620.
Nuvama said India’s base remains favourable in H2CY25, but September quarter may be affected by heavy monsoon rainfall. "Given the miss in a key quarter, we are cutting CY26E EPS by 6 per cent (CY27E EPS unchanged), yielding a revised TP of INR606 (earlier Rs 659); retain ‘BUY’," it said.
"We retain BUY on VBL and our target of Rs 575 (50x Jun-27E EPS), led by our expectation of 15 per cent organic Ebitda CAGR (CY25-27E) and potential inorganic growth accretion, helped by a strengthened balance sheet," Emkay Global said.
ICICI Securities, meanwhile, remained cautious and suggested a target price of Rs 500, given the rising competitive intensity, which could restrict the medium-term performance.
Varun Beverages Ltd rallied 4 per cent in Wednesday's trade, taking its three-day rally to 12 per cent. The PepsiCo bottler's cost efficiency-led margin expansion drove earnings beat in the June quarter, even as its India volumes remained soft.
On Wednesday, the stock rose 4.25 per cent to hit a high of Rs 534 on BSE. Despite this, the scrip is down 20 per cent year-to-date.
JM Financial said Varun Beverages’ Q2 earnings print -- the company follows calendar as accounting year, was ahead of its estimate as weakness in domestic volumes was offset by strong delivery on margins.
"India volumes declined by 7 per cent (JMFe: 4 per cent) partially offset by better volumes & realisation in International business, resulting in 3 per cent miss on consolidated sales," it said.
Analysts were largely surprised by stable gross margin and superior execution on extracting cost efficiencies in India business, and better realisation and margin expansion in International business, which resulted in EBitda beat of 9 per cent.
Factoring in a volume miss, JM cut earnings by 4 per cent and suggested a target of Rs 595 on VBL.
MOFSL said VBL delivered a stable performance despite the challenges posed by unseasonal rains during the quarter. Going ahead, it expects VBL to maintain its earnings momentum, aided by a scale-up in the international market, strengthening on-ground execution, and an enhanced product visibility with an increase in the number of visi coolers. MOFSL also sees expanding product portfolio as a reason for its optimism.
This brokerage values the stock at Rs 620.
Nuvama said India’s base remains favourable in H2CY25, but September quarter may be affected by heavy monsoon rainfall. "Given the miss in a key quarter, we are cutting CY26E EPS by 6 per cent (CY27E EPS unchanged), yielding a revised TP of INR606 (earlier Rs 659); retain ‘BUY’," it said.
"We retain BUY on VBL and our target of Rs 575 (50x Jun-27E EPS), led by our expectation of 15 per cent organic Ebitda CAGR (CY25-27E) and potential inorganic growth accretion, helped by a strengthened balance sheet," Emkay Global said.
ICICI Securities, meanwhile, remained cautious and suggested a target price of Rs 500, given the rising competitive intensity, which could restrict the medium-term performance.