Buy Varun Beverages; target of Rs 1300: ICICI Direct
ICICI Direct is bullish on Varun Beverages has recommended buy rating on the stock with a target price of Rs 1300 in its research report dated April 29, 2022.
Broker Research
April 30, 2022 / 12:24 PM IST
"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.
ICICI Direct's research report on Varun Beverages
Varun Beverages is one of the largest franchisees of PepsiCo in the world. The company produces & distributes carbonated drinks, juices & packaged drinking water in six countries including India. Some of the PepsiCo brands produced by VBL includes Pepsi, Diet Pepsi, Seven-Up, Mirinda, Mountain Dew, Nimbooz, String, Slice, Tropicana, Aquafina among others. The company has operations in India (except Andhra Pradesh, J&K & Ladakh), Sri-Lanka, Nepal, Morocco, Zambia & Zimbabwe.
Outlook
We upgrade the stock from HOLD to BUY rating. We value the stock at Rs 1300, valuing the business 24x CY23 EV / EBITDA.
For all recommendations report, click here
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