BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Varun Beverages Ltd. will start contract manufacturing for Pepsi's snack brand Kurkure Puffcorn and we believe it is a step in right direction.
Depending on the Varun Beverages' progress in Kurkure Puffcorn business, we expect Pepsi to offer more products and regions to the company. As of now Varun Beverages will set up a plant in Uttar Pradesh for Rs 200-250 million and will produce Kurkure Puffcorn.
While Varun Beverages has not worked on foods portfolio earlier, we believe Jaipuria Group has strong understanding of foods value chain due to other group companies like Devyani and Cream bell dairy.
We continue to stay positive on the company due to its competitive advantages and strong relationships with Pepsi. We model Varun Beverages to report a profit after tax compound annual growth rate of 29.3% over CY21-23E with an improving return on equity.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
