Citi has initiated coverage on Varun Beverages with a Buy call and a target price of ₹800, implying a potential upside of 36% from the current price of ₹590. The brokerage highlights Varun Beverages’ strong market position in India and its growth opportunities in the soft drinks segment.
Citi also noted the company’s go-to-market (GTM) initiatives and its ability to create new categories as key drivers of growth. The expanding geographic reach, including entry into new territories in Africa for food and beverage (F&B), is viewed as a positive catalyst for medium-term growth.
Citi expects revenue and EPS to grow at a compound annual growth rate (CAGR) of 23% and 29%, respectively, over CY23-26E.
Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making any investment decisions.
