Hem Securities report on Varun Beverages
Revenue, EBITDA and PAT grew by 26%, 39% and 98% respectively led by robust volume growth of 18.7% on the back of early onset of summer. Volume sales stood at 17.97 Cr cases vs 15.14 Cr cases in Q1CY21. Revenue contribution for CSD, Juice and PDW stood at 70%, 7.2% and 22.8% respectively. PAT almost doubled to 694 Cr from 329 Cr driven by lower interest expense, lower cost of borrowings and higher margins.
We expect healthy revenue, EBITA and PAT growth by 15%, 20% and 35% in coming years hence we maintain BUY rating on the stock with target price of 898 which implies an upside of 20% .
At 14:44 hrs Varun Beverages was quoting at Rs 769.25, up Rs 21.35, or 2.85 percent.
It has touched an intraday high of Rs 771.95 and an intraday low of Rs 742.00.
It was trading with volumes of 32,738 shares, compared to its thirty day average of 185,636 shares, a decrease of -82.36 percent.
In the previous trading session, the share closed down 0.89 percent or Rs 6.70 at Rs 747.90.
The share touched its 52-week high Rs 1,166.50 and 52-week low Rs 710.00 on 02 June, 2022 and 05 July, 2021, respectively.
Currently, it is trading 34.05 percent below its 52-week high and 8.35 percent above its 52-week low.
Market capitalisation stands at Rs 49,966.60 crore.
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