Shares of Varun Beverages Ltd. (VBL) surged 3% after DAM Capital maintained its ‘Buy’ rating on the stock, with a target price of ₹670. The brokerage sees the recent price correction as an attractive entry point for long-term investors.
Strong Growth Drivers
DAM Capital anticipates strong demand acceleration for VBL, citing:
- Prolonged and intense summer, driving higher beverage consumption.
- 20% year-on-year (YoY) capacity expansion, boosting production capabilities to meet rising demand.
The brokerage forecasts a robust 19% CAGR sales growth for VBL between CY24-26E, supported by 16% volume growth. Meanwhile, earnings per share (EPS) is expected to grow at a 26% CAGR. As a market leader in India’s fast-growing beverage sector, VBL remains a top pick in the consumer discretionary space.
Varun Beverages’ stock opened at ₹514.25, reaching a high of ₹524.75 and a low of ₹512.75 during the trading session. The stock remains significantly below its 52-week high of ₹681.12 but above its 52-week low of ₹419.55. I
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