Varun Beverages - Soaring Temperature To Aid Volume Growth: Axis Securities

Axis Securities Report

We believe Varun Beverages Ltd. is well placed under current market situation as early onset of summer season is expected to drive overall beverage sales across regions.

Further, initial report on possible El-nino (deficit rainfall) could delay the rural recovery which would led the entire fast moving consumer goods pack (excluding ITC Ltd.) under wait-and-watch mode.

Hence, in this current volatile market situation we expect Varun Beverages along with ITC (firing on all cyclinder) provides better earning visibility than other fmcg peers in the near term.

Varun Beverages has been in our top picks portoflio since long and we continue to remain positive on the stock on a mid to long term basis.

We estimate revenue/Ebitda/profit after tax compound annual growth rate of 17%/21%/25% over CY22-24E based on the above mentioned rationales.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.