Shares of Varun Beverages Ltd have turned weak in the short term. The FMCG stock delivered negative returns to investors for period up to a year. Varun Beverages stock slipped 0.6%, 2.95% and 0.60% in six months, three months and two weeks, respectively. However, Varun Beverages stock has gained 31% from its 52-week low this year. The stock fell to its 52-week low of Rs 478.48 on January 18, 2024.
In the current session, the stock ended on a flat note at Rs 627.70 on BSE.
The multibagger stock has gained 27% in a year and risen 26.35% in 2024. It zoomed 143% in two years and gained 460% in three years. A total of 0.98 lakh shares of the firm changed hands, amounting to a turnover of Rs 6.15 crore. Market cap of the firm stood at Rs 2.12 lakh crore.
In terms of technicals, the relative strength index (RSI) of Varun Beverages stands at 50.1, signaling the stock is trading neither in the overbought nor in the oversold zone.
Varun Beverages shares stand lower than the 5 day, 10 day, 20 day but higher than the 30 day, 50 day, 150 day and 200 day moving averages.
The stock has a beta of 0.8, indicating very low volatility in a year.
Axis Securities has an equal weight call on Varun Beverages with a target price of Rs 700.
"Varun Beverages is likely to continue its strong growth momentum on account of 1) Successful strategic acquisition of the Beverage Company, thereby consolidating its presence in South Africa and DRC. The continued focus on expansion in its distribution reach, mainly in rural areas and commissioning of multiple green field and brownfield facilities across geographies, strengthening manufacturing capabilities and extending market reach, is saving on significant transportation costs. We believe these investments are poised to support the company's long-term growth objectives and profitability," said the brokerage.
Varun Beverages is a beverage company. It operates franchisee of PepsiCo. The company produces and distributes a range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo.