Varun Beverages investors in a fix: GST rejig, earnings hit sentiment; price targets & more

Shares of Varun Beverages are under intense selling pressure in the short term, minimising gains for the multibagger stock, which has clocked over 600% returns in five years. The proposed GST rejig placing Varun Beverages under Sin Goods with a 40% tax has affected investor sentiment on Dalal Street. Sin Goods include alcohol, tobacco, gambling or betting, food products with high fat or sugar content, and so on. 

Varun Beverages comes under the category of aerated, carbonated, sugary, and caffeinated beverages (including fruit drink variants).

Rising competitive pressure from brands such as Coca Cola and Reliance-owned Campa Cola has impacted the earnings show of the Pepsico bottler. This has also slowed the pace of Varun Beverages stock. 

Q2 earnings for the June 2025 quarter were subdued. Net profit rose just 5% year on year (YoY) to Rs 1325 crore. Revenue from operation slipped 2.3% in the last quarter. 

The stock has lost fizz in the short term, falling 27% this year and losing 22% in a year. In shorter time durations too, the stock has lost ground. 

Analysts hold mixed views on the outlook of the stock. 

Gaurav Bissa, VP at Incred Equities said, "Varun Beverages has been under immense pressure since the start of 2025 and has been an underperformer. While it has managed to restrict its fall, it is now undergoing time correction. It is advised to avoid fresh entry at the current levels and wait for a fresh triggers. However, existing shareholders can hold the stock with a stop loss placed at Rs 445."

AR Ramachandran, SEBI-registered Independent analyst says, "Varun Beverages stock price is bullish on the Daily charts with strong support at Rs 469. A Daily close above resistance of Rs 481 could lead to a target of Rs 530 in the near term."

In the current session, Varun Beverages stock was trading on a flat note at Rs 475 on BSE. Market cap of the firm stood at Rs 1.60 lakh crore. A total of 2.73 lakh shares of the firm changed hands, amounting to a turnover of Rs 12.94 crore. 

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.