Varun Beverages shares at Rs 500 mark in a year? Factors that can boost the PepsiCo bottler's stock 

Shares of Varun Beverages are expected to touch the Rs 500 mark in a year, according to Axis Securities.  Varun Beverages stock, which is in a correction mode in the last two years, has received a buy call with revenue/EBITDA/PAT likely to see a growth of 19%/20%/26% CAGR over CY24-27E.

The stock is under bear attack with shares of the PepsiCo bottler falling 25% in two years, 11% in six months, and 7% this year. It also trades lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 150 day and 200 day simple moving averages. 

According to Axis, the firm continues to strengthen its growth platform through calibrated capacity expansion. Four new greenfield plants have been commissioned in high-growth regions, alongside brownfield additions across key locations to improve scale and logistics efficiency.

The brokerage finds the company well positioned to sustain strong growth, supported by the BevCo acquisition in South Africa and DRC, expansion of its snacks business in Africa, deeper rural penetration, and ongoing capacity additions. 

Further, scaling high-margin brands such as Sting and sharpening focus on value-added beverages are expected to drive steady revenue and margin expansion, added the brokerage. 

In the current session, Varun Beverages stock was trading 0.59% lower at Rs 454.55 against the previous close of Rs 457.25. A total of 0.20 lakh shares of the firm changed hands, amounting to a turnover of Rs 89.19 lakh. Market cap of the firm stood at Rs 1.53 lakh crore.