Varun Beverages Share Price Target: 35% GST Hike On Drinks - Buy or Sell?

Varun Beverages Target Price: The shares of Varun Beverages Limited, the company responsible for manufacturing, bottling, and distribution of popular beverages in the country, were trading in the red after the GST Council tabled 35 per cent GST on aerated drinks, cigarettes, and other sin goods.

However, domestic brokerage firms are optimistic about the growth of the company in the long term. “VBL has a proven track record of margin improvement post-acquisitions, such as with BevCo. We expect VBL to drive profitability through backward integration, enhancing cost efficiencies and supporting long-term margin expansion,” a brokerage note from KRChoksey stated.

As of 01:40 PM on Tuesday, the shares of Varun Beverages were trading 2.02 per cent or Rs 12.75 down at Rs 619.50 apiece.

Varun Beverages Share Price Target

Here are the target prices for Varun Beverages stocks from key brokerages

Axis Securities: The domestic brokerage firm Axis Securities has given the stock a target price of Rs 700 apiece against the current market price of Rs 620.65 apiece.

Kotak Institutional Equities: In the brokerage note, the firm has given an ‘Attractive’ rating to the stock, giving it an Rs 20 upside with the target price of Rs 640.

Varun Beverages Stock Performance

The shares of the bottling company have recorded a 4.38 per cent upside in the last month while the stock has surged more than 5.79 per cent during the last six months. In terms of year-to-date performance, the value of the stock has jumped 24.65 per cent while 44.68 per cent gains have been recorded in the last 12 months.

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