HSBC has maintained a ‘Buy’ rating on Varun Beverages with a target price of ₹670 per share, implying an upside potential of approximately 23% from the current market price of ₹544.00.
The brokerage highlighted a robust start to the summer season, projecting India volume growth at 14% in Q1. Additionally, it noted that recent mergers and acquisitions are expected to drive a 30% surge in revenue and a 31% jump in EBITDA, further boosting the company’s financial performance.
HSBC believes Varun Beverages has a strong execution advantage in traditional trade channels, which is expected to support continued growth momentum. The brokerage remains optimistic on the company’s growth trajectory backed by strong fundamentals and sector tailwinds.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.