Shares of Varun Beverages Ltd have surged 24% in the past month, helping offset losses for the PepsiCo bottler’s stock. However, despite this recent rally, the stock remains down by 17% in 2025. On Friday, Varun Beverages closed 0.53% higher at ₹539.60 on the BSE, with a total of 3.47 lakh shares traded, resulting in a turnover of ₹18.74 crore. The stock has also rebounded by 29% from its 52-week low of ₹419.40, recorded on March 3 this year.
With a beta of 0.8, the stock demonstrates relatively low volatility over a year.
From a technical perspective, Varun Beverages has a Relative Strength Index (RSI) of 57.4, indicating that it is neither in the overbought nor the oversold zone. The stock is currently trading above its 5-day, 10-day, 20-day, 30-day, and 50-day moving averages but remains below its 100-day, 150-day, and 200-day moving averages.
Brokerage firm Motilal Oswal has set a target price of ₹680 for the stock.
“Considering its strong fundamentals and growth potential, we project a revenue/EBITDA/PAT CAGR of 18%/16%/27% over CY24-26 and maintain our BUY rating. We value the stock at 55x Mar’27E EPS, arriving at a target price of ₹680,” stated the brokerage.
Citi Research is optimistic about the stock’s short-term performance.
In a recent note, the brokerage highlighted that Varun Beverages is poised for a strong rally over the next 90 days, driven by an expected earnings boost from the approaching summer season and benefits from its recent business acquisitions in Africa. It also noted that the recent correction was “overdone” and that the current risk-reward ratio is favorable for medium to long-term investors.
JM Financial has also issued a ‘Buy’ rating with a price target of ₹675 per share. The firm believes that the recent downturn in the stock was excessive and that prevailing market pessimism presents a good opportunity to accumulate more shares.
KR Choksey has set a price target of ₹657 for Varun Beverages.
“We anticipate Revenue/EBITDA/Adj. PAT to grow at a CAGR of 22.1%/23.2%/27.9% over CY24-26E. Applying a P/E multiple of 52.0x on CY26E EPS of ₹12.6, we arrive at a target price of ₹657 per share,” the firm stated.
DAM Capital has also issued a bullish ‘Buy’ call on the stock, with a price target of ₹670 per share.
According to DAM Capital, the recent dip presents an attractive buying opportunity for investors seeking sustainable earnings growth and market leadership in the rapidly expanding beverage sector. The firm also expects strong near-term demand, supported by an extended and more intense summer.
Varun Beverages, a key franchisee of PepsiCo, is engaged in the production and distribution of a variety of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including packaged drinking water, all marketed under PepsiCo-owned trademarks.
