Varun Beverages shares turn weak, oversold on charts; what analysts say

Shares of Varun Beverages have turned weak in the short term. The FMCG stock has clocked negative returns for period up to a year. The multibagger stock has lost 30% in a year and in 2025. In six months too, the stock is down 25.65%. Selling in the Varun Beverages stock has a pushed it in the oversold zone with a RSI of 29.3. An RSI below 30 indicates, the stock is oversold on charts and RSI above 70 signals the stock has entered the overbought zone. 

On the other hand, the stock rose 202% in three years and gained 599% in five years. 

In the current session, Varun Beverages stock rose 1.67% to Rs 455.80 on BSE. Market cap of the firm stood at Rs 1.54 lakh crore. A total of 2.60 lakh shares of the firm changed hands, amounting to a turnover of Rs 11.86 crore. On the other hand, the stock has fallen 33.24% from its 52-week high of Rs 682.84 reached on July 29 last year. 

 Axis Securities has assigned a price target of Rs 650. 

"Varun Beverages has consistently outperformed its peers in recent quarters despite a volatile environment. The company is expected to sustain its strong growth momentum, driven by key factors: 1) The strategic acquisition of BevCo, strengthening its presence in South Africa and DRC; 2) Expansion of its snacks portfolio beyond India, particularly in Zimbabwe and Zambia; 3) A continued push to increase distribution reach, especially in rural markets; 4) Commissioning of multiple greenfield and brownfield facilities, enhancing manufacturing capacity, expanding market reach, and optimizing transportation costs; and 5) Scaling up the high-margin Sting energy drink while expanding its value-added dairy, sports drinks (Gatorade), and juice segments. These strategic initiatives are set to drive long-term growth and profitability," said the brokerage. 

AR Ramachandran, SEBI registered Independent analyst says, "Varun Beverages stock price is  bullish on the Daily charts with strong support at Rs 447. A Daily close above resistance of Rs 463 could lead to a target of  Rs 493 in the near term."

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi said, "Share's support will be at Rs 440 and resistance at Rs 465. A decisive move above the Rs 465 level may trigger a further upside of 490. The expected trading range will be between Rs 440 and Rs 495 for the short term."

Goldman Sachs has a price target of Rs 600 mark in a year. The brokerage expects Varun Beverages' earnings CAGR to be higher than the sector average, implying relatively attractive risk reward. 

The company is likely to unlock market potential through superior execution as the brokerage sees multiple drivers to outperform India's fast growing ready-to-drink (RTD) market

The brokerage finds high growth headroom for RTD beverages as India's per capita consumption of RTD beverages is among the lowest globally. 

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.

The Pepsico bottler clocked a 33.45% rise in net profit for the March 2025 quarter. Net profit rose to Rs 731.30 crore in Q1 against Rs 131.9 crore in the March 2024 quarter. Revenue from operations in Q4 rose 29% to Rs 5680 crore against Rs 4397.98 crore in the corresponding period of the previous fiscal EBITDA rose 27.8% in Q1 to Rs 1263.96 crore from Rs 988.76 crore in the Q1 of previous fiscal. The board also cleared a interim dividend of Rs 0.50 per share.  

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.