Varun Beverages stock with 41% profit CAGR has lost fizz in 2025, what's next?

Varun Beverages shares have lost over one fourth of their value in 2025. The FMCG stock is down 27% in 2025, the maximum across all time durations for the multibagger stock. The stock, with very low debt, has kept investors empty-handed in period up to a year even as the firm delivered a 41% CAGR in net profit in the last five years.

Shares of Varun Beverages closed lower than the Rs 500 mark for the fifth straight session today. The stock of the Pepsico bottler ended at Rs 476.50 against the previous close of Rs 474.75 on BSE. Market cap of the firm rose to Rs 1.61 lakh crore. A total of 2.16 lakh shares of the firm changed hands, amounting to a turnover of Rs 10.30 crore.

The FMCG stock has fallen 21% in a year. However, the stock has gained 120% in three years and risen 634% in five years.

Hardik Matalia, Derivative Analyst, Choice Broking said, "Varun Beverages stock has been moving in a wide range consolidation phase, with occasional bounces, but it continues to face rejection from its immediate resistance zone. A breach below Rs 450 could trigger extended selling pressure, taking the stock further down. On the technical front, the stock is trading below all its key short-term, medium-term, and long-term moving averages, which highlights persistent weakness in the trend."

Matalia advised to buy the stock on dips for the long term. "If a reversal sustains, a bounce towards the moving averages in the Rs 520–Rs 540 range cannot be ruled out. A decisive close above Rs 570 will be crucial to confirm a meaningful trend reversal and fresh upside momentum. For short-term traders, limited upside opportunities can be considered if a reversal sustains, targeting the moving average zones. Long-term investors, however, may consider partial accumulation at current levels and continue adding on dips for a staggered investment approach," added Matalia.

Deven Choksey Research is bullish  on the stock with a price target of Rs 588. Maintaining a buy call on the stock, the brokerage said its expects revenue, EBITDA and PAT to grow at a CAGR of 13.0%,13.4% and 17.3%, respectively, over CY24–CY26E.

"Currently, the stock is trading at a PE multiple of 54.4x/46.2x based on CY25E/CY26E EPS, respectively. We value Varun Beverages at 49.0x June-27 EPS (~ -1SD to 1-year avg. NTM P/E), implying a target price of Rs 588, said the brokerage.

Robust international growth, increased traction in new launches like Gatorade and Prime, and enhanced capacities from recent plant additions have kept the brokerage bullish on the FMCG counter.

Axis Securities has a price target of Rs 590 on the multibagger stock. Axis expects revenue/EBITDA/PAT to grow at 23%/23%/31% CAGR over CY24-27E.

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.