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.

live

bselive
nselive

Volume

Todays L/H

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.