PepsiCo Bottler Varun Beverages Poised For Robust Growth, Says JM Financial Initiating Coverage

JM Financial Services highlights Varun Beverages Ltd. as a formidable player in India's beverage sector, having expanded its share in PepsiCo's soft drinks volumes from less than 30% in 2011 to approximately 90% in 2024. The brokerage cited its strong geographic expansion and robust supply chain as drivers of growth.

The scrip rose as much as 0.64% to Rs 655 apiece, the highest level since Dec. 30. It pared gains to trade 0.01% lower at Rs 650.80 apiece, as of 10:24 a.m. This compares to a 0.52% advance in the NSE Nifty 50 index.

It has risen 31.62% in the last twelve months. The relative strength index was at 60.66.

Out of 24 analysts tracking the company, 21 maintain a 'buy' rating, and three recommend a 'hold,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 9.1%.