Varun Beverages shares: Morgan Stanley initiates coverage with an 'overweight' call, sees 23% upside
Varun Beverages share price target: Global brokerage firm Morgan Stanley initiated coverage on Varun Beverages- (VBL), the leading bottler of beverage major PepsiCo with an overweight rating.
Varun Beverages share price target: Global brokerage firm Morgan Stanley initiated coverage on Varun Beverages (VBL), the leading bottler of beverage major PepsiCo with an overweight rating. The brokerage has set the target price at Rs 1,701, implying an upside potential of over 23 per cent from the previous close.
Over the next 3 years, the analysts at the brokerage expect Varun Beverages to deliver India business' revenue growth averaging 19 per cent annually with EBITDA margins steady at an average of 23.7 per cent, as per its report on the counter.
The stock looks better placed than peers, as it is trading at 57x C25 EPS estimates on the valuation front. With a solid track record of scaling domestic & global opportunities as well as strong profitability, VBL will continue to outpace F&B industry growth, according to Morgan Stanley.
Varun Beverages fits in well with the preference for mass discretionary names in 2024, the brokerage said in its report.
In addition, last week, Varun Beverages said it has started commercial production of soft drinks and energy drinks from its production facility at Gorakhpur, Uttar Pradesh. The Jaipuria family-promoted firm will also start juices and value-added dairy products from the Gorakhpur facility, Varun Beverages said in a regulatory filing. Read more
Varun Beverages share price history
Shares of Varun Beverages have rallied over 90 per cent in the last one year outperforming gain of over 25 per cent in the benchmark index Nifty 50.
Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
From 19,000 Monthly SIP to Rs 13 cr Retirement Corpus: How many years will it take to reach this target; by what age can one achieve this goal
Power of Compounding: Rule of 114; how much return you will get on Rs 2 lakh investment in 2, 5 and 8 years? See calculations
'Diwali Offer' Stocks by Anil Singhvi: These 2 largecap, 1 smallcap scrips can give up to 70% return - Check targets
12:01 PM IST