Varun Beverages has drawn positive attention from brokerages, including HSBC and now Citi, after its recent performance.
HSBC maintained a buy rating with a target price of ₹770, implying a 29.7% upside. The brokerage highlighted the company’s strong Q3 operating performance, driven by volume growth and cost efficiencies. HSBC also emphasized the company’s focus on capacity expansion and debt reduction.
Citi has now joined the bullish sentiment, maintaining its buy rating with a higher target price of ₹800. Citi pointed to Varun Beverages gearing up for new growth opportunities in both category and territory expansions. While the company’s operations in India were impacted by heavy rains, its EBITDA growth remains strong. Citi acknowledged that Varun’s absolute multiples are rich but believes they are justified given the company’s robust business prospects.
With both HSBC and Citi providing buy ratings, Varun Beverages appears to be positioned for continued growth in the beverage sector.
Disclaimer: The information provided is for informational purposes only and should not be construed as investment advice.
