Varun Beverages stock gets a price target cut, slowdown a concern
Varun Beverages stock: Investors are uncertain if the slowdown is seasonal or structural. The brokerage said weak Q2 volumes due to a mild summer are priced in the stock.
- Jul 10, 2025,
- Updated Jul 10, 2025 9:09 AM IST
Shares of Varun Beverages Ltd are likely to be impacted as HSBC has reduced its price target on the Pepsico bottler. HSBC said weak Q2 volumes due to a mild summer are priced in the stock. However, investors are uncertain if the slowdown is seasonal or structural. The brokerage trimmed its price target to Rs 620 against the earlier Rs 670.
While retaining its buy call, HSBC said changing competitive dynamics are healthy for the growing soft drink market. Varun Beverages should sustain growth in line with the industry, the brokerage added.
In the previous session, Varun Beverages stock ended 1.48% higher at Rs 465.65 on BSE. Market cap of the firm stood at Rs 1.59 lakh crore.
In April, the brokerage assigned a price targte of Rs 670 to the stock citing that recent market concerns seem overdone. Bad weather & competition, typical industry brand innovation miss don't justify a fall in equity value, it had said.
The Pepsico bottler reported a 33.45% rise in net profit for the March 2025 quarter. Net profit rose to Rs 731.30 crore in Q1 against Rs 131.9 crore in the March 2024 quarter. Revenue from operations in Q1 rose 29% to Rs 5680 crore against Rs 4397.98 crore in the corresponding period of the previous fiscal. EBITDA climbed 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 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 Ltd are likely to be impacted as HSBC has reduced its price target on the Pepsico bottler. HSBC said weak Q2 volumes due to a mild summer are priced in the stock. However, investors are uncertain if the slowdown is seasonal or structural. The brokerage trimmed its price target to Rs 620 against the earlier Rs 670.
While retaining its buy call, HSBC said changing competitive dynamics are healthy for the growing soft drink market. Varun Beverages should sustain growth in line with the industry, the brokerage added.
In the previous session, Varun Beverages stock ended 1.48% higher at Rs 465.65 on BSE. Market cap of the firm stood at Rs 1.59 lakh crore.
In April, the brokerage assigned a price targte of Rs 670 to the stock citing that recent market concerns seem overdone. Bad weather & competition, typical industry brand innovation miss don't justify a fall in equity value, it had said.
The Pepsico bottler reported a 33.45% rise in net profit for the March 2025 quarter. Net profit rose to Rs 731.30 crore in Q1 against Rs 131.9 crore in the March 2024 quarter. Revenue from operations in Q1 rose 29% to Rs 5680 crore against Rs 4397.98 crore in the corresponding period of the previous fiscal. EBITDA climbed 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 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.