Varun Beverages shares surged nearly 3% in morning trade after global brokerage firm Goldman Sachs maintained its ‘Buy’ rating on the stock, setting a target price of ₹600. The bullish stance comes as the stock’s valuation has seen a notable correction over the past year, now trading below its five-year average price-to-earnings (P/E) ratio. As of 9:42 AM, the shares were trading 2.64% higher at Rs 460.50.
Goldman Sachs highlighted the company’s strong positioning in India’s rapidly expanding ready-to-drink (RTD) beverage segment. As one of the leading bottling partners for PepsiCo, Varun Beverages stands to gain significantly from rising consumer demand in the soft drinks and juice categories. The brokerage expects the company to continue expanding its market share, particularly in high-growth segments between 2024 and 2027.
Backing its positive outlook, Goldman Sachs projects an 11% compound annual growth rate (CAGR) in revenue from the India business during the calendar years 2024–27. The company’s aggressive distribution expansion, product innovation, and operational efficiencies are expected to support this growth.
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