Varun Beverages shareholders need to be more patient? Here's what analysts say
Varun Beverages shares still trade below their record high of Rs 668 reached on September 12 last year.
- Aug 20, 2025,
- Updated Aug 20, 2025 2:21 PM IST
Shares of Varun Beverages are in an uptrend in the short term. The FMCG stock has risen 6.90% in a month. However, the stock is still down 20.33% this year and corrected 14% in a year. The stock has partially recovered from the ongoing correction. In the current session, Varun Beverages stock was trading nearly 3% higher at Rs 519.75 on BSE. Market cap of the firm stood at Rs 1.75 lakh crore.
A total of 4.43 lakh shares of the firm changed hands, amounting to a turnover of Rs 22.69 crore.
Analysts have mixed views on the technical outlook of the multibagger stock, which has risen 162% in three years and rallied 679% in five years. Here's what they said.
Osho Krishan from Angel Broking said, "VBL has demonstrated positive momentum in recent trading weeks, surpassing both the 50 and 100-DEMA on the daily chart. In terms of price levels, the range of Rs 490 to Rs 480 is anticipated to offer support in the short term. Conversely, the price zone of Rs 520 to Rs 530, which aligns with the 200-DSMA, is expected to act as an intermediate resistance level. A decisive movement beyond this zone could initiate the next phase of the rally for this stock."
Kunal Kamble, Sr. Technical Research Analyst at Bonanza Portfolio said, "Varun Beverages stock currently forming a symmetrical triangle pattern on the daily timeframe. The preferred approach is to wait for a breakout confirmation before taking positions. On the upside, a breakout above Rs 537 would be the trigger to go long, whereas on the downside, weakness would only be confirmed if the stock slips below Rs 450. From a moving average perspective, the stock is trading above its 21- and 50-EMA, suggesting near-term positivity; however, it remains below the 200-EMA, indicating that the long-term trend is yet to turn decisively bullish. On the momentum front, the RSI is forming lower highs and lower lows, which does not align with the short-term uptrend. Similarly, the MACD line crossing below the signal line is a sign of caution for bullish traders. The setup suggests it is prudent to avoid initiating fresh positions at current level and instead wait for a clear breakout confirmation before participating."
Shitij Gandhi, Sr Research Analyst, SMC Global Securities says the stock indicates a potential trend reversal.
"The stock has been trading within a well-defined descending channel over the past several months, consistently remaining below its 100-day Exponential Moving Average (EMA), which has acted as a strong resistance level, reinforcing the bearish trend.However, recent price action has shown a notable shift in momentum. On the daily timeframe, the stock has formed a "W" pattern (double bottom reversal), signaling a potential trend reversal. This bullish pattern was confirmed by a sharp upward breakout from the declining channel, accompanied by a significant surge in trading volume, indicating strong buying interest.The breakout has now propelled the stock back above its previous bearish channel, suggesting a possible end to the downtrend.On downside key support are for the stock is placed in zone of Rs 480-470 while any fresh upside momentum above resistance level of Rs 520 will push prices higher towards Rs 570 levels," said Gandhi.
Om Mehra, Technical Research Analyst, SAMCO Securities said, "Varun Beverages is attempting to extend its recovery phase after consolidating near the Rs 490–Rs 495 zone. The stock has recently rebounded from this support zone, which coincides with its 20-day SMA, suggesting an early-stage base is forming. However, the trend remains mixed as it continues to trade below the 200-day SMA, capping the strength of the rebound. The daily chart shows price action holding above 50-day averages, indicating that the short-term outlook has stabilized, though upside traction is yet to gain momentum. The MACD, still in the negative zone, is showing signs of narrowing, hinting that downward momentum is losing steam.
The key zone between Rs 490 and Rs 495 has emerged as an important support base, and sustaining above this band will be critical for extending the recovery.
On the upside, a close above Rs 525 would mark a decisive move beyond the super trend indicator, potentially opening a rally toward Rs 545 and further toward Rs 565. Conversely, any slip below Rs 490 may weaken the setup and drag the stock back toward Rs 465. The medium-term trend stays constructive as long as the stock defends the Rs 465–Rs 470 support band, while a breakout above short-term averages would confirm the next leg higher."
Varun Beverages follows a calendar year of reporting (January to December).
Varun Beverages reported a 5% rise in net profit for the quarter ended June 2025. Profit climbed to Rs 1325.4 crore in Q2 against Rs 1261.83 crore on a YoY basis. Revenue fell 2.5% to Rs 7017.3 crore in Q2 against Rs 7196.8 crore in the year ago period.
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 in an uptrend in the short term. The FMCG stock has risen 6.90% in a month. However, the stock is still down 20.33% this year and corrected 14% in a year. The stock has partially recovered from the ongoing correction. In the current session, Varun Beverages stock was trading nearly 3% higher at Rs 519.75 on BSE. Market cap of the firm stood at Rs 1.75 lakh crore.
A total of 4.43 lakh shares of the firm changed hands, amounting to a turnover of Rs 22.69 crore.
Analysts have mixed views on the technical outlook of the multibagger stock, which has risen 162% in three years and rallied 679% in five years. Here's what they said.
Osho Krishan from Angel Broking said, "VBL has demonstrated positive momentum in recent trading weeks, surpassing both the 50 and 100-DEMA on the daily chart. In terms of price levels, the range of Rs 490 to Rs 480 is anticipated to offer support in the short term. Conversely, the price zone of Rs 520 to Rs 530, which aligns with the 200-DSMA, is expected to act as an intermediate resistance level. A decisive movement beyond this zone could initiate the next phase of the rally for this stock."
Kunal Kamble, Sr. Technical Research Analyst at Bonanza Portfolio said, "Varun Beverages stock currently forming a symmetrical triangle pattern on the daily timeframe. The preferred approach is to wait for a breakout confirmation before taking positions. On the upside, a breakout above Rs 537 would be the trigger to go long, whereas on the downside, weakness would only be confirmed if the stock slips below Rs 450. From a moving average perspective, the stock is trading above its 21- and 50-EMA, suggesting near-term positivity; however, it remains below the 200-EMA, indicating that the long-term trend is yet to turn decisively bullish. On the momentum front, the RSI is forming lower highs and lower lows, which does not align with the short-term uptrend. Similarly, the MACD line crossing below the signal line is a sign of caution for bullish traders. The setup suggests it is prudent to avoid initiating fresh positions at current level and instead wait for a clear breakout confirmation before participating."
Shitij Gandhi, Sr Research Analyst, SMC Global Securities says the stock indicates a potential trend reversal.
"The stock has been trading within a well-defined descending channel over the past several months, consistently remaining below its 100-day Exponential Moving Average (EMA), which has acted as a strong resistance level, reinforcing the bearish trend.However, recent price action has shown a notable shift in momentum. On the daily timeframe, the stock has formed a "W" pattern (double bottom reversal), signaling a potential trend reversal. This bullish pattern was confirmed by a sharp upward breakout from the declining channel, accompanied by a significant surge in trading volume, indicating strong buying interest.The breakout has now propelled the stock back above its previous bearish channel, suggesting a possible end to the downtrend.On downside key support are for the stock is placed in zone of Rs 480-470 while any fresh upside momentum above resistance level of Rs 520 will push prices higher towards Rs 570 levels," said Gandhi.
Om Mehra, Technical Research Analyst, SAMCO Securities said, "Varun Beverages is attempting to extend its recovery phase after consolidating near the Rs 490–Rs 495 zone. The stock has recently rebounded from this support zone, which coincides with its 20-day SMA, suggesting an early-stage base is forming. However, the trend remains mixed as it continues to trade below the 200-day SMA, capping the strength of the rebound. The daily chart shows price action holding above 50-day averages, indicating that the short-term outlook has stabilized, though upside traction is yet to gain momentum. The MACD, still in the negative zone, is showing signs of narrowing, hinting that downward momentum is losing steam.
The key zone between Rs 490 and Rs 495 has emerged as an important support base, and sustaining above this band will be critical for extending the recovery.
On the upside, a close above Rs 525 would mark a decisive move beyond the super trend indicator, potentially opening a rally toward Rs 545 and further toward Rs 565. Conversely, any slip below Rs 490 may weaken the setup and drag the stock back toward Rs 465. The medium-term trend stays constructive as long as the stock defends the Rs 465–Rs 470 support band, while a breakout above short-term averages would confirm the next leg higher."
Varun Beverages follows a calendar year of reporting (January to December).
Varun Beverages reported a 5% rise in net profit for the quarter ended June 2025. Profit climbed to Rs 1325.4 crore in Q2 against Rs 1261.83 crore on a YoY basis. Revenue fell 2.5% to Rs 7017.3 crore in Q2 against Rs 7196.8 crore in the year ago period.
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.