Varun Beverages share price target: What should investors do with PepsiCo bottler stock after it beats quarterly profit?

Varun Beverages share price today, Varun Beverages share price target: Shares of Varun Beverages were trading in positive territory on D-Street in Tuesday's morning deals after global brokerages maintained their positive view on the stock post PepsiCo, which is one of its largest franchisees, reported its first-quarter results. The stock rose as much as 5.53 per cent to the day's high of Rs 1,559 on NSE, halting the three-day declining trend. The stock closed at Rs 1,490.05, up 0.86  per cent on NSE. 

Varun Beverages shares price target: Brokerages upbeat 

Jefferies has maintained a buy call on Varun Beverages. The brokerage has raised the target to Rs 1,690 per share from Rs 1,480 per share earlier. CLSA too, has continued with a buy call with a target of Rs 1,744 on the the franchise partner of PepsiCo stock.

Morgan Stanley has retained an overweight call with a target of Rs 1,701.

Should you buy, sell or hold Varun Beverages shares? Here's what Anil Singhvi suggests

Zee Business Managing Editor Anil Singhvi recommended buying Varun Beverages shares with a stop loss at Rs 1,460 for targets of Rs 1,495 and Rs 1,505.

Varun Beverages Q4 results

Varun Beverages on Monday reported a 25 per cent rise in consolidated profit after tax at Rs 547.98 crore in the first quarter ended March 2024.

The company, which follows a calendar year (January-December) of reporting, had posted consolidated profit after tax (PAT) of Rs 438.57 crore in the same quarter last year, Varun Beverages said in a regulatory filing.

Consolidated revenue from operations in the first quarter stood at Rs 4,397.98 crore as against Rs 3,952.59 crore in the year-ago period, it added.

Total expenses were higher in the quarter at Rs 3,609.76 crore compared to Rs 3,329.7 crore in the year-ago period.

Management commentary

Varun Beverages Chairman Ravi Jaipuria said despite a delay in the Holi festival by 17 days resulting in a delayed seasonality cycle, the company had a reasonably strong overall operational and financial performance in the first quarter of the year.

"We achieved a consolidated sales revenue growth of 10.9 per cent with a break up of volume growth of 7.2 per cent and net realisation per case growth of 3.5 per cent in Q1, reflecting an improved product mix in India and higher contributions from international markets," he added.

Consolidated sales volume grew by 7.2 per cent to 240.2 million cases in Q1 CY2024 from 224.1 million cases in Q1 CY2023, the company said.

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