Varun Beverages shareholders trim losses with recent recovery, time to buy?

Shares of Varun Beverages Ltd have trimmed losses of late by logging minor gains for shareholders with long-term losses. The stock with losses of up to 26% in two years disappointed investors in the short term too. It slipped 11% in six months and 6% in a year. In fact, the year to date correction of 12% signals that the stock is set to end lower on an annual basis for the second consecutive year. Varun Beverages shares closed 23.14% lower in 2025.

Meanwhile, the FMCG stock rose 5% in the last two weeks, raising expectations of a turnaround in the beaten down scrip.

In the current session, Varun Beverages shares were trading on a flat note. The stock stood at Rs 434 with a market cap of Rs 1.46 lakh crore. A total of 0.53 lakh shares of the firm changed hands, amounting to a turnover of Rs 2.30 crore.

It rose to a 52 week high of Rs 555.60 on June 17 this year.

The shares of the PepsiCo bottler are trading lower than the 5 day, 150 day, 200 day but higher than the 10 day, 20 day, 30 day, 50 day simple moving averages.

Axis Securities has a price target of Rs 515 on the FMCG stock. The brokerage maintains its buy call on the stock, supported by a favourable risk-reward profile and VBL’s long-term growth opportunities from the expanded PepsiCo partnership, Africa expansion and entry into new categories and adjacencies.

Choice Broking said it expects VBL to sustain healthy volume growth, with long-term double-digit growth potential across India and Africa. "India growth will be driven by distribution expansion, premiumisation and product innovation, while international growth will be supported by capacity expansion and strong demand across key Africa markets," the brokerage added.

The brokerage cut its CY26/CY27E earnings estimates by 10%/6%, respectively, and revised its target multiple to 35x Sep-28E EPS (earlier 40x) to factor in the impact of higher raw material inflation headwinds.

The brokerage maintains BUY rating with a revised target price of Rs 460 (earlier Rs 550).

HSBC has a hold call on the stock. It has a price target of Rs 540 on the stock.

JP Morgan has an overweight call on the stock with a target price of Rs 490. Citi has  buy rating with a target price of Rs 550. Kotak has a buy call on the stock with a target price of Rs 515.

About Varun Beverages 

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.