Varun Beverages (VBL) reported strong revenue growth of 38% YoY in 1QCY23, led by robust growth in volumes (up 24.7% YoY) with realization touching INR174/unit (up ~11% YoY). Savings in raw material prices and an improved product mix led to a YoY improvement of 90bp in gross margins. Gross margin/unit case grew 12% YoY to INR91.1, while EBITDA/unit case improved 21% YoY to INR35.6, supported by favorable operating leverage.
OutlookFactoring in 1QCY23 performance, we raise our CY23/CY24 earnings estimates by 6%/3% on the back of better-than-expected realization and margins. We reiterate our Buy rating on the stock with a TP of INR1,690.
For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Varun Beverages - 03 -05 - 2023 - motiDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
