Varun Beverages Share price: Brokerage firm Antique Stock Broking has once again expressed hope of a rise in the shares of PepsiCo bottler Varun Beverages Limited (VBL). Along with this, the brokerage has also increased its target price for the stock. Shares of Varun Beverages have fallen by 1.52 percent today and the stock is trading at Rs 636.65 on BSE. With this decline the market cap of the company has decreased to Rs 2.15 lakh crore. The stock’s 53-week high is Rs 682.84 and 52-week low is Rs 478.48.
Brokerage Opinion on Varun Beverages
Antique Stock Broking says Varun Beverages’ international volumes are likely to increase after the acquisition in Africa. It maintained “Buy” recommendation on the stock and raised the target price to Rs 710 per share from Rs 690 previously.
With the recent announcement by Varun Beverages Limited (VBL) to expand its business in Africa, the report estimates VBL’s international volume share to increase to ~36.5 per cent by CY26 (19.3 per cent in CY23). . The brokerage expects VBL to deliver total volume growth of 21 per cent, revenue growth of 24 per cent and EBITDA CAGR of 28 per cent during CY23-26.
Varun Beverages Limited (VBL) has recently taken important steps to grow its business through key acquisitions and financial reforms. The company has acquired the Tanzania market, which has a capacity of approximately 200 million cases and a 34% market share. The acquisition price is ₹17.5 billion. According to the report, Tanzania is a strong market for PepsiCo and has the potential to deliver “mid-teens” volume growth in the future.
The company also acquired the Ghana market, which has a capacity of approximately 20 million cases and an 11% market share. The acquisition price is ₹1.9 billion. Recently VBL had also announced to increase its stake in Lunarmake Technologies to 100 percent.
VBL is one of PepsiCo’s largest bottling partners globally, having managed to deliver positive annual returns every year since listing. It has given an annual return of 30 percent in 2024. In the last 5 years, its investors have got a handsome profit of 920 percent. VBL conducted a Qualified Institutional Placement (QIP) to raise Rs 75 billion from institutional investors. Of this, ₹56 billion will be used to repay debt, making the company a “net cash company”. The remaining amount will be used to fund acquisitions and future growth initiatives.
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