Varun Beverages Ltd. Brokerage/Research Reports, analyst Research Reports (2024)

Broker Report

Robust domestic growth and margin expansion drive overall performance

KRChoksey

VBL showcased a robust performance in Q2CY24 results, which outperformed our estimates across the board.
Net revenue of INR 71,969 Mn, excluding excise duty (+28.3% YoY, +66.7% QoQ), outperformed our estimates.

Broker Report

Varun Beverages Limited.

Keynote Capitals Ltd

Quarterly Update Q1FY25

Broker Report

Result Update:Varun Beverages

Axis Direct

With an 14% upside potential from the CMP, we maintain our BUY rating on the stock.

Broker Report

Domestic business drives volume growth

Motilal Oswal

Varun Beverages (VBL) reported a revenue growth of 29% YoY in 2QCY24, led by volume growth (up 28% YoY). This was primarily driven by a domestic volume growth of 23% YoY.

Broker Report

Hungry For More: Scaling up snack food business

Motilal Oswal

Varun Beverages (VBL) has inched closer to its goal of becoming a full-scale F&B
player with the recent agreement with PepsiCo to manufacture, distribute, and sell
snack food items in Zimbabwe and Zambia. We believe this agreement will serve as a building block for VBL’s snack food business.

Broker Report

Enhanced growth prospects with improved realization and entry in new markets

KRChoksey

VBL (Varun Beverages Limited) reported mixed bag of results for Q1CY24, which missed our revenue and net profit estimates by 7% and 10%, respectively.
Net revenue, excluding excise duty, of INR 43,173 Mn (+11.3% YoY, +61.0% QoQ) missed our estimates due to delayed seasonality cycle, reflecting in lower-than-estimated volume growth of 7.1% YoY, partially offset by higher-than-expected realizations.

Broker Report

Capacity addition and expansion of international business to drive growth; Stretched valuations

ICICI Securities Limited

Highlights: (1) Continued buoyant margin performance led by lower input prices, higher realisation and benefits of strategic cost-saving initiatives undertaken, (2) international business strengthened further, following the acquisition of BevCo (South Africa and surrounding region) and agreement signed for manufacturing of snacks from May’25 in Morocco market,

Broker Report

Result Update:Varun Beverages

Axis Direct

With a 18% upside potential from the CMP, we maintain our BUY rating on the stock.

Broker Report

Cost optimization and better realization drive earnings

Motilal Oswal

Varun Beverages (VBL) reported a revenue growth of 11% YoY in 1QCY24,
led by volume growth (up 7% YoY) and high realization (up 4% YoY to
INR180/case).

Broker Report

Varun Beverages Limited.

Keynote Capitals Ltd

Quarterly Update Q4FY24

Broker Report

Axis Annual Analysis:Varun Beverages

Axis Direct

We maintain a Buy rating for VBL, with a target price of Rs 1550 per share, representing a potential upside of 11% from the current market price

Broker Report

Annual Report Round-Up

KRChoksey

Varun Beverages Limited (VBL) continued to see strong growth in CY23, despite the impact of unseasonal rains during peak season. Net revenue from operations grew by 21.8% YoY, backed by volume growth of 13.9% YoY and realization per case growth of 7.0% YoY.

Broker Report

Strong volume growth to continue due to capacity, distribution and territory expansion

KRChoksey

For Q4CY23, VBL continued its strong revenue traction and reported a revenue net of excise of INR 26,677 Mn, a growth of 20.5% YoY. The YoY growth was supported by strong double-digit volume growth (+18.0% YoY) and realization improvement (+1.9% YoY). Revenue declined by 31.1% QoQ due to seasonality, with volumes declining by 29.1% QoQ and net realization declining by 2.8% QoQ.

Broker Report

Result Update:Varun Beverages

Axis Direct

We believe VBL is expected to continue its strong growth momentum and we maintain our BUY recommendation on the stock.

Broker Report

Varun Beverages Limited.

Keynote Capitals Ltd

Quarterly Update Q3FY24

Broker Report

Strong volume growth drives sales

Motilal Oswal

Broker Report

Expanding global presence with acquisition in South Africa

Motilal Oswal

Broker Report

Company Update:Varun Beverages

Axis Direct

We maintain our BUY rating on the stock with the revised TP of Rs 1,450/share (47x CY25EPS) vs. the earlier TP of Rs 1,200/share (45x CY25 EPS), implying an upside of 24% from the CMP.

Broker Report

Strong financial position and expansion to drive growth

KRChoksey

PepsiCo and the market leader Coca-Cola form 80.0%+ of the carbonated drinks market in India. VBL, as the ~90% contributor to PepsiCo’s India beverage sales, will benefit from the industry tailwinds such as rising income and discretionary spending levels, a large youth population, growing urbanization, and availability of reliable electricity and cooling equipment in rural India.

Broker Report

Result Update:Varun Beverages

Axis Direct

With a 13% upside potential from the CMP, we maintain our BUY rating on the stock.