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Buy Varun Beverages; target of Rs 1110: Motilal Oswal

Motilal Oswal is bullish on Varun Beverages recommended buy rating on the stock with a target price of Rs 1110 in its research report dated August 01, 2022.

August 04, 2022 / 06:15 PM IST
 
 
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Motilal Oswal's research report on Varun Beverages


VBL posted strong revenue growth in 2QCY22, led by robust volume growth (up 97% YoY) and higher realization (up 3%). EBIDTA/unit case improved by 11% YoY to INR41.7 on the back of operating leverage and higher realizations, despite inflationary raw material environment impacting gross margin. Factoring a better than expected volume and realization growth in 2QCY22, we raise our CY22/CY23/CY24 earnings estimate by 7%/10%/10%.



Outlook


We expect a revenue/EBITDA/PAT CAGR of 20%/24%/37% over CY21-24. We value the stock at 40x CY24E EPS to arrive at our TP of INR1,110. We maintain our Buy rating.

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Varun Beverages - 020822 - moti

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first published: Aug 4, 2022 06:15 pm
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