Mumbai, India — Shares of Varun Beverages Ltd (VBL) rose by 1.23% on Thursday to Rs 481.45, as brokerage firms provided a mixed yet optimistic outlook on the company’s growth prospects.
Jefferies: Correction Exaggerated, Growth Outlook Strong
Jefferies noted that its channel checks indicated mixed feedback, with the Campa brand gaining traction primarily against local and regional competitors. While closely monitoring the developments, the brokerage believes the recent correction in VBL’s share price is exaggerated.
It emphasized that the company’s valuation at 45 times one-year forward price-to-earnings (PE) remains attractive in the context of its growth potential. With expectations of a strong summer season acting as a key trigger, Jefferies has set a target price of Rs 715 for the stock.
KRChoksey: Strong Margin Performance and Growth Projections
KRChoksey Shares and Securities highlighted that Varun Beverages maintained a 21% margin in India for 2024. It also noted that international margins, particularly in South Africa, are expected to improve in 2025 due to backward integration efforts.
The brokerage projects VBL’s revenue, EBITDA, and adjusted PAT to grow annually by 22.1%, 23.2%, and 27.9%, respectively, over 2024-26. It applied a price-to-earnings multiple of 52 times on CY26 estimated EPS of Rs 12.6, resulting in a target price of Rs 657 per share. KRChoksey has maintained a ‘Buy’ rating on Varun Beverages Ltd since February 11, 2025.
Market Outlook
With a strong summer season expected to drive sales and continued operational improvements, analysts remain optimistic about VBL’s growth trajectory. Investors are closely watching the company’s performance, particularly its international expansion and brand positioning, to determine future stock movements.
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