Varun Beverages shares set to end 2025 on a negative note, what's next?

Shares of Varun Beverages look set to end the year 2025 on a negative note. The FMCG stock is down over 25% in 2025 and fallen 22% in a year. The multibagger stock seems to be stuck in the bear grip for two years too with a loss of 2.17% during the period. However, Varun Beverages shares rose 497.65% in five years. 

In the current session, the stock rose 3% to Rs 485.85 against the previous close of Rs 469.60. A total of 3.26 lakh shares of the firm changed hands, amounting to a turnover of  Rs 15.62 crore.                                                             

In terms of technicals, the relative strength index (RSI) of Varun Beverages stands at 48.7, signaling the stock is trading neither in the overbought nor in the oversold zone.

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

Deven Choksey Research has a price target of Rs 576 on the stock with a buy call. 

The brokerage believes that the management remains optimistic about sustaining growth momentum, supported by robust international performance and a recovery in domestic demand as weather conditions normalize. 

The company's focus continues on product diversification across energy drinks, value-added dairy, and hydration categories, alongside new initiatives in Africa’s beer and RTD segments. The brokerage also noted that International expansion remains a core growth engine, led by South Africa’s strong double-digit trajectory, recovery in Zimbabwe and DRC, and new ventures in Kenya and Morocco. 

Global brokerage CITI has a price target of Rs 675 on the FMCG stock. 

Varun Beverages has made a strategic acquisition by acquiring a soft drinks brand in South Africa, further strengthening its international footprint, said CITI. The brokerage expects improvement in the performance of Varun Beverages’ India operations going forward. International expansion combined with efficiency gains and improving domestic performance supports long-term growth and earnings visibility, said CITI. 

Emkay Global has a price target of Rs 615 against Rs 575 earlier. 

Referring to the Twizza acquisition, the domestic brokerage said VBL’s volume market share is set to increase to 20% in the geography by CY27E (vs 10% now). 

Among new regions, South Africa gains significance as its NARTD market is large and is 40% of India’s market, albeit growing at a slower pace (3% volume CAGR). 

"Though the market is mature, we are confident of a market share-driven double-digit volume growth in the geography, basis VBL’s strong track record for turnarounds in Zimbabwe and Nepal (>50% share now)," said Emkay Global. 

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.