Varun Beverages shares rise 24% in March but negative on YTD basis, here are fresh price targets

Shares of Varun Beverages Ltd have gained 24% in a month, limiting losses for the stock of the Pepsico bottler.  Despite the recent rally, the multibagger stock is down 17% in 2025. On Friday, Varun Beverages stock ended 0.53% higher at Rs 539.60 on BSE. A total of 3.47 lakh shares of the firm changed hands, amounting to a turnover of Rs 18.74 crore. On the other hand, the stock has risen 29% from its 52-week low of Rs 419.40 reached on March 3 this year. 

The stock has a beta of 0.8, indicating very low volatility in a year. 

In terms of technicals, the relative strength index (RSI) of Varun Beverages stands at 57.4, signaling the stock is trading neither in the overbought nor in the oversold zone. Varun Beverages shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day but lower than the 100 day, 150 day and 200 day moving averages. 

Motilal Oswal has a price target of Rs 680 on the stock. 

"Factoring in strong fundamentals and potential for future growth, we build in 18%16%/27% revenue/EBITDA/PAT CAGR over CY24-26 and reiterate our BUY rating for the stock. We value the stock at 55x Mar’27E EPS to arrive at a target price of of Rs 680," said the brokerage. 

Citi Research is bullish on the stock in the short term.  

In a note, the brokerage said that the stock is likely to record a strong rally in the next 90 days due to earnings boost as the summer season advances, and also due to benefits from recent business acquisitions in Africa. The brokerage said the recent correction was 'overdone' and the risk-reward is currently favourable over medium to long-term.

JM Financial a 'Buy' rating on the stock with a target price of Rs 675 per share. The recent correction was ‘overdone’, and ‘prevailing market pessimism’ should be an opportunity to buy more shares of the company, it said. 

KR Choksey has assigned a price target of Rs 657 on the VBL stock. 

"We expect Revenue/EBITDA/Adj. PAT to grow by 22.1%/23.2%/27.9% CAGR over CY24-26E. We apply a P/E multiple of 52.0x on CY26E EPS of INR 12.6, resulting in a target price of Rs 657/share," said  KR Choksey. 

Brokerage firm DAM Capital has is bullish on the stock with a 'Buy' call. It has a target of Rs 670 per share on the stock.

According to the brokerage, the recent correction offers an attractive buying opportunity for investors looking for sustainable earnings growth and market leadership in the fast-growing beverage sector.

The company is likely to see a strong near-term demand with an extended and more intense summer, says DAM Capital. 

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.