BUZZ - Shares of Varun Beverages rise as PhillipCapital initiates coverage with a 'Buy' rating

路透社2026/10/05 06:11

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October 5th – PhillipCapital stated that PepsiCo’s domestic bottler, Varun Beverages (VARB.NS), will benefit from market opportunities, product innovation, and strong distribution moat. The brokerage initiated coverage on the stock with a “Buy” rating and set a target price of 560 rupees. PhillipCapital pointed out that the company’s recent business expansions—including KIVA Spirits, the Asahi partnership in India, and collaboration with Carlsberg in Africa—offer additional growth potential not yet reflected in the share price. VARB’s introduction of new consumer product categories, such as zero-sugar carbonated soft drinks, energy drinks, sports drinks, and dairy-based beverages, helps solidify its value base, attract health-conscious consumers, and promote product premiumization. Although there are competitive threats, the brokerage believes that in India's soft drink market, where penetration is still low, new mainstream contenders are more likely to expand the overall market rather than take significant share from existing players. Out of 25 analysts, 22 assign the stock a “Buy” or higher rating; the median target price is 556 rupees. The company’s share price rose 1.7% to 432.55 rupees, with a year-to-date decline of 11.6% (To facilitate non-English speakers, Reuters provides automated translations of its reports into several other languages. As automated translation may be inaccurate or lack the required context, Reuters does not guarantee the accuracy of automated translations and provides them for reader convenience only. Reuters accepts no liability for any damage or loss caused by the use of automated translation features.)

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