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    Buy Varun Beverages, target price Rs 1200: Axis Securities

    Synopsis

    Varun Beverages Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 47228.75 Crore) operating in FMCG sector.

    buyAgencies
    Promoters held 64.89 per cent stake in the company as of 31-Mar-2022, while FIIs owned 21.03 per cent, DIIs 7.21 per cent.
    Axis Securities has buy call on Varun Beverages with a target price of Rs 1200. The current market price of Varun Beverages is Rs 1087.75. Time period given by analyst is one year when Varun Beverages Ltd. price can reach defined target.

    Varun Beverages Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 47228.75 Crore) operating in FMCG sector.

    Varun Beverages Ltd. key Products/Revenue Segments include Beverages, Other Operating Revenue, Other Services for the year ending 31-Dec-2020.


    Financials
    For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 2835.98 Crore, up 63.44 % from last quarter Total Income of Rs 1735.19 Crore and up 26.23 % from last year same quarter Total Income of Rs 2246.62 Crore. Company reported net profit after tax of Rs 271.09 Crore in latest quarter.

    Investment Rationale
    Despite challenging global cues, the brokerage remains positive on VBL’s performance in the coming months owing to peak summer season demand, & operating leverage coming into play due to volume offtake in CY22E/CY23E. Other key growth drivers are 1) Strong execution in under-serviced territories South, West and East markets, (penetrating in semi- urban/rural areas with better refrigeration infra and VC placements), 2) Market share gains, 3) Debt reduction and healthy cash flow generation, 4) Expansion in new international geographies (Democratic Republic of Congo). It maintains BUY with TP of Rs 1,200/share as it values it at 36x March-24E EPS.

    Promoter/FII Holdings
    Promoters held 64.89 per cent stake in the company as of 31-Mar-2022, while FIIs owned 21.03 per cent, DIIs 7.21 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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