Shares of Varun Beverages Ltd (VBL), a key bottler for PepsiCo, have experienced a significant downturn, slipping 25% from their 52-week high of Rs 555.60 recorded on June 17, 2026. This decline is part of a broader bearish trend, with the stock losing 34% over the past two years and 20% in the last three months alone. The stock closed recently at Rs 416.25, up 1.2% in a trading session where 8.04 lakh shares changed hands.
Analyst Outlooks on Varun Beverages Stock
Despite the recent volatility and downtrend, several financial analysts and brokerage firms maintain optimistic views on Varun Beverages' future performance.
Master Capital Services: Eyeing a Base Formation
Vishnu Kant Upadhyay, AVP of Research & Advisory at Master Capital Services, has issued a 'buy' recommendation for Varun Beverages stock. He suggests a target price range of Rs 445-460, with a stop loss at Rs 380. Upadhyay notes that VBL is attempting to establish a base around the Rs 390-400 mark, an area that has historically served as crucial support. He highlights a bullish RSI divergence on the daily chart, indicating improving underlying momentum despite the price weakness. A sustained hold above Rs 390 could trigger a recovery towards short-term moving averages.
CLSA Maintains 'High Conviction Outperform'
Global brokerage firm CLSA has reiterated its 'High Conviction Outperform' rating for Varun Beverages, setting an ambitious target price of Rs 654. CLSA cites the company's strategic partnership with Asahi Group Holdings to introduce CALPIS in India as a significant positive. This collaboration adds a differentiated fermented dairy ready-to-drink beverage to VBL's portfolio, leveraging the company's robust manufacturing capabilities, cold-chain infrastructure, and extensive distribution network.
Axis Securities Forecasts Strong Growth
Axis Securities has also issued a positive outlook, assigning a price target of Rs 530 for Varun Beverages stock. The brokerage anticipates that VBL will sustain its strong growth trajectory, driven by several strategic initiatives:
- Strengthening its footprint in South Africa through the acquisition of Twizza and Crickley.
- Expanding its snacks portfolio beyond India, particularly in Zimbabwe and Zambia.
- Continuous efforts to enhance distribution reach, with a specific focus on rural penetration.
- Ongoing distribution expansion and adequate capacity positioning the company for sustained growth.
- Expansion of the high-margin Sting energy drink (including Sting Classic – Gold & Black, and Sting in Cans), alongside a sharper focus on value-added dairy, sports drinks (Gatorade), and juice categories.
- Entry into the alcoholic beverages sector.
Axis Securities projects a Compound Annual Growth Rate (CAGR) of 20% for revenue, 18% for EBITDA, and 23% for PAT over CY25-27, believing these strategic moves will support sustained revenue and margin expansion.
About Varun Beverages
Varun Beverages operates as a franchisee of PepsiCo, producing and distributing a wide array of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including packaged drinking water, all sold under trademarks owned by PepsiCo.