Motilal Oswal Financial Services has maintained its Buy rating on Varun Beverages with a target price of ₹550, highlighting resilience amid a challenging operating backdrop.
The brokerage noted that CY25 has been marked by an unprecedented competitive environment, including aggressive industry-wide discounting and adverse weather conditions. Despite this, Varun Beverages adopted a disciplined and differentiated strategy anchored in pack optimisation and targeted market interventions.
Looking ahead, MOSL expects strategic innovation, capacity investments and premiumisation initiatives to support double-digit domestic volume growth in CY26, with margins seen stabilising near current levels despite near-term realisation pressures.
The brokerage forecasts a CAGR of 13% in revenue, 13% in EBITDA and 16% in PAT over CY25–27, reflecting steady earnings growth despite competitive intensity.
Disclaimer: The views expressed above are those of Motilal Oswal Financial Services and do not represent the views of Business Upturn. This article is for informational purposes only and does not constitute investment advice.