Varun Beverages shares set for a 25% upside, here's why
Varun Beverages stock, which closed at Rs 482.75 on Monday is seen rising 25% from that level. The brokerage expects Varun Beverages' earnings CAGR to be higher than the sector average, implying relatively attractive risk reward.
- May 27, 2025,
- Updated May 27, 2025 11:43 AM IST
Shares of Varun Beverages are likely to reach the Rs 600 mark in a year, according to global brokerage Goldman Sachs. Varun Beverages stock, which closed at Rs 482.75 on Monday is seen rising 25% from that level.
The brokerage expects Varun Beverages' earnings CAGR to be higher than the sector average, implying relatively attractive risk reward.
The company is expected to unlock market potential through superior execution as the brokerage sees multiple drivers to outperform India's fast growing ready-to-drink (RTD) market
The brokerage finds high growth headroom for RTD beverages as India's per capita consumption of RTD beverages is among the lowest globally.
In the current session, Varun Beverages stock stood flat at 480.20 on BSE. Market cap of the firm stood at Rs 1.62 lakh crore. A total of 3.62 lakh shares of the firm changed hands, amounting to a turnover of Rs 17.50 crore. On the other hand, the stock has fallen 29.53% from its 52-week high of Rs 682.84 reached on July 29 in 2024.
The stock has a beta of 0.9, indicating very low volatility in a year.
In terms of technicals, the relative strength index (RSI) of Varun Beverages stands at 40, signaling the stock is trading neither in the overbought nor in the oversold zone.
Varun Beverages shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
The Pepsico bottler reported a 33.45% rise in net profit for the March 2025 quarter. Net profit climbed to Rs 731.30 crore in Q1 against Rs 131.9 crore in the March 2024 quarter. Revenue from operations in Q4 rose 29% to Rs 5680 crore against Rs 4397.98 crore in the corresponding period of the previous fiscal. EBITDA rose 27.8% in Q1 to Rs 1263.96 crore from Rs 988.76 crore in the Q1 of previous fiscal. The board also cleared a interim dividend of Rs 0.50 per share.
Varun Beverages’ consolidated sales volume rose 30.1% to 312.4 million cases in Q1 against 240.2 million cases in the same quarter last year, led by strong organic volume growth of 15.5% in India and additional in-organic volume contributions from South Africa and the DRC.
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.
Shares of Varun Beverages are likely to reach the Rs 600 mark in a year, according to global brokerage Goldman Sachs. Varun Beverages stock, which closed at Rs 482.75 on Monday is seen rising 25% from that level.
The brokerage expects Varun Beverages' earnings CAGR to be higher than the sector average, implying relatively attractive risk reward.
The company is expected to unlock market potential through superior execution as the brokerage sees multiple drivers to outperform India's fast growing ready-to-drink (RTD) market
The brokerage finds high growth headroom for RTD beverages as India's per capita consumption of RTD beverages is among the lowest globally.
In the current session, Varun Beverages stock stood flat at 480.20 on BSE. Market cap of the firm stood at Rs 1.62 lakh crore. A total of 3.62 lakh shares of the firm changed hands, amounting to a turnover of Rs 17.50 crore. On the other hand, the stock has fallen 29.53% from its 52-week high of Rs 682.84 reached on July 29 in 2024.
The stock has a beta of 0.9, indicating very low volatility in a year.
In terms of technicals, the relative strength index (RSI) of Varun Beverages stands at 40, signaling the stock is trading neither in the overbought nor in the oversold zone.
Varun Beverages shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
The Pepsico bottler reported a 33.45% rise in net profit for the March 2025 quarter. Net profit climbed to Rs 731.30 crore in Q1 against Rs 131.9 crore in the March 2024 quarter. Revenue from operations in Q4 rose 29% to Rs 5680 crore against Rs 4397.98 crore in the corresponding period of the previous fiscal. EBITDA rose 27.8% in Q1 to Rs 1263.96 crore from Rs 988.76 crore in the Q1 of previous fiscal. The board also cleared a interim dividend of Rs 0.50 per share.
Varun Beverages’ consolidated sales volume rose 30.1% to 312.4 million cases in Q1 against 240.2 million cases in the same quarter last year, led by strong organic volume growth of 15.5% in India and additional in-organic volume contributions from South Africa and the DRC.
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.