Varun Beverages shares rise 4% amid a weak market; here's why 

Shares of Varun Beverages rose nearly 4% on Monday after brokerage BoFA Sec maintained its buy call on the FMCG player amid the ongoing market carnage. 

The brokerage said VBL has good earnings potential (i.e. growth in teens, even before inorganic upsides) & stock valuation below history/peers. Subsequently, this results in risk-reward turning favourable. 

In the current session, Varun Beverages stock rose 3.74% to  Rs 416.40 in early deals against the previous close of Rs 401.35. A total of 3.03 lakh shares of the firm changed hands, amounting to a turnover of Rs 12.44 lakh. Market cap of the firm stood at Rs 1.37 lakh crore.

The stock is trading near 52-week low amid correction in the stock market. The stock has come under pressure, falling 7% in the last one week as Indian market mirrors global sell-off arising out of the ongoing US-Israel and Iran war. 

Varun Beverages shares also hit a 52-week low of Rs 5400.60 on March 13 this year. The PepsiCo bottler has carried forward losses in the stock market from 2025 to the current year. The stock fell 23.14% last year. This year too, the stock is down 17% and has fallen 29% in two years. 

While assigning a price target of Rs 550 to the VBL stock, the brokerage said the firm is strengthening its portfolio to effectively meet peak India summer demand & navigate competitive intensity. The brokerage said overseas business has been steady with long-term gains expected on new forays (snacks, beer, Kenya) possible.

Amid the ongoing market correction, the stock has turned oversold on charts with its RSI falling to 26.7. 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.