Varun Beverages shares reclaim Rs 500 mark after two sessions, what's next?

Shares of Varun Beverages reclaimed the Rs 500 mark on Monday after investors turned bullish on the reduction in India-Pakistan tensions. The ceasefire between the two nations led to the return of bulls on Dalal Street today.  A fresh development on the US-China tariff front also boosted sentiment. Reports said China lowered tariffs on US goods to 10% from 125% for 90 days. 

This led Varun Beverages stock to reclaim the Rs 500 mark today after two consecutive sessions. 

Varun Beverages stock rose 3.46% to Rs 513.50 on BSE today. Market cap of the firm stood at Rs 1.72 lakh crore.  A total of 2.41 lakh shares of the firm changed hands, amounting to a turnover of Rs 12.27 crore. On the other hand, the stock has fallen 25% from its 52-week high of Rs 682.84 reached on July 29 in 2024. 

ICICI Securities has a hold call on the Varun Beverages stock with a price target of Rs 500. 

"We maintain HOLD with a DCF-based unchanged target price of Rs 500 at an implied P/E of 49x/39x CY25/CY26E." 

Key risks to the brokerage's assumptions include a steep rise in competitive pressures and faster-than-expected recovery in urban and rural economies. 

Kotak Equities has an add call on the stock with a price target of Rs 570.

"We cut CY2025-27E EPS by 3-5% as we factor in the recent call-off of TZ/GH acquisition and moderate expectations across the international portfolio. We roll over and revise FV to Rs 570 (Rs 585), valuing VBL at 49 times June-26E PE (50X)," said Kotak Equities. 

Axis Securities has a buy call on the stock with a target of Rs 650.  

"We expect VBL to continue its strong growth momentum in the mid- to long-term. Hence, we maintain our BUY recommendation on the stock. Current Valuation: 42xMar-27EPS (Earlier: 48xDec-26EPS) Current TP: Rs 650/share (Earlier TP: Rs 710/ share). We maintain our BUY rating on the stock," said Axis Securities. 

The stock has a beta of 0.8, indicating very low volatility in a year. 

In terms of technicals, the relative strength index (RSI) of Varun Beverages stands at 38.8, signaling the stock is trading neither in the overbought nor in the oversold zone. 

Varun Beverages shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

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.