Target share price for Varun Beverages: After PepsiCo bottler stock outperforms quarterly earnings, what should investors do with the stock?

The current share price of Varun Beverages and its target share price are: In Tuesday’s morning trade, shares of Varun Beverages were up as international brokerages kept their optimistic outlook on the stock following One of its biggest franchisees, PepsiCo, released its first-quarter financial results. The stock broke its three-day losing trend on the NSE, rising as much as 5.53% to the day’s high of Rs 1,559. On NSE, the stock ended the day up 0.86 percent, closing at Rs 1,490.05.

Price objective for Varun Beverages shares: Brokers optimistic

Jefferies continues to recommend buying Varun Beverages. The goal has been increased by the brokerage to Rs. 1,690 per share, up from the previous price of Rs 1,480. Additionally, CLSA has persisted in issuing a buy call on the franchise partner of PepsiCo shares, with a target price of Rs 1,744.

Morgan Stanley has decided to hold an overweight call with a 1,701 objective.

Is it better to buy, sell, or retain shares of Varun Beverages? This is Anil Singhvi’s recommendation.

Anil Singhvi, managing editor of stock 24 news, advised purchasing Varun Beverages stock with a stop loss at Rs. 1,460 and goals of Rs. 1,495 and Rs. 1,505.

Results for Varun Beverages’ Q4

Varun Beverages announced on Monday that its consolidated earnings after tax for the first quarter ended in March 2024 increased by 25% to Rs 547.98 crore.

The business, which reports from January to December on a calendar year, has reported consolidated profit after tax (PAT) of Rs 438.57 crore for the corresponding quarter in the previous year, according to a regulatory filing from Varun Beverages.

It also stated that the first quarter’s combined revenue from operations was Rs 4,397.98 crore, up from Rs 3,952.59 crore in the same period last year.

Comparing the quarter’s total expenses to the same period last year, they were Rs 3,609.76 crore as opposed to Rs 3,329.7 crore.

Management analysis

Despite a 17-day delay in the Holi festival, which caused a delayed seasonality cycle, Varun Beverages Chairman Ravi Jaipuria stated the company’s overall operational and financial performance in the first quarter of the year was rather strong.

We had an increase in consolidated sales revenue of 10.9%, broken down into Volume increased by 7.2% and net realization per case increased by 3.5% in Q1, he continued. These results were due to both increased contributions from outside markets and an improved product mix in India.

According to the corporation, consolidated sales volume increased from 224.1 million cases in Q1 CY2023 to 240.2 million cases in Q1 CY2024, a 7.2% increase.

Account opning link:

1. Groww Account- https://app.groww.in/v3cO/kyrp1zph
2. Kotak neo Account https://kotaksecurities.ref-r.com/c/i/32531/109103906