Should I buy Varun Beverages stock in 2025?

What is Varun Beverages?

How much is Varun Beverages stock?

The price of Varun Beverages stock is slightly down this week. As of now, the stock trades at ₹494.80, with a 24-hour decrease of ₹6.85 (-1.37%) and a marginal weekly dip of ₹1.45 (-0.29%).

While recent volatility has been limited, investors should consider both the company’s strong growth outlook and the current bearish technical signals.

Our full analysis on Varun Beverages stock

After a thorough review of Varun Beverages Limited’s latest financial results and a detailed analysis of the stock’s multi-year performance, our team has synthesized a broad array of fundamental indicators, technical signals, and peer comparisons using proprietary quantitative models. While the recent correction in the share price has drawn investor attention, VBL’s robust growth trajectory and expanding strategic footprint suggest that the prevailing weakness may present a compelling accumulation zone for long-term exposure. So, why might Varun Beverages re-emerge as a strategic entry point for the consumer and beverages sector in 2025?

Recent Performance and Market Context

Varun Beverages (VBL) has experienced a notable correction over the past six months, with its share price retreating by nearly 19% (to ₹494.80 as of May 19, 2025), and currently trading at a 17.93% discount to its 1-year price. This decline, set against a broader consolidation in large-cap consumer stocks, warrants context. Despite the relative underperformance, market consensus remains bullish, with analysts assigning a robust ₹643.24 price target—suggesting approximately 30% upside from current levels.

Several positive fundamentals underpin this outlook:

• Resilience amidst market volatility: Major Indian indices have recently seen profit booking across consumer names, providing sector-wide re-entry points.
• Industry tailwinds: The Indian non-alcoholic beverage market is benefiting from rising per capita income, rapid urbanization, and an extended summer season—all supporting volume expansion.
• Landmark events: VBL’s acquisition of South Africa’s BevCo and the rollout of large-scale greenfield projects across three Indian states underscore management’s commitment to strategic capacity building and international diversification.
• Strong operating metrics: Record Q1 sales volumes and outperformance vs. estimates have reinforced confidence in the company’s demand trajectory, even as input cost pressures persist.

Collectively, these dynamics frame recent weakness not as a structural deterioration, but rather as a market-driven phenomenon which could allow investors to accumulate shares at attractive valuations.

Technical Analysis

From a technical perspective, VBL currently trades below all major moving averages (20-day, 50-day, 100-day, and 200-day), confirming a prevailing bearish momentum that has dominated since the recent correction. Key takeaway technicals include:

• Relative Strength Index (RSI): At 39.7, VBL is approaching, but not yet in, oversold territory. This suggests sellers are in control but the proximity to oversold levels often attracts accumulation from patient investors.
• Moving Average Convergence Divergence (MACD): The MACD reading at -8.1 (signal line at -5.4) reinforces a negative bias, but the magnitude begins to flatten—often an early indicator of momentum exhaustion.
• Price structure: The stock is now consolidating above critical support levels at ₹487.83 and ₹480.30, and further downside appears cushioned by these price floors. Resistance lies near ₹500.73 and ₹519.74; successful retests of these marks could trigger a technical reversal.
• Medium-term momentum: While short-term momentum is bearish, the prospect of reversal increases as the stock trades near key multi-quarter supports, particularly given strong fundamental underpinnings.

In sum, technical signals indicate that VBL is trading near tactical support, and any stabilization or reversal could set the stage for a new bullish sequence—making the timing appear increasingly favorable for considered entries.

Fundamental Analysis

Despite the technical weakness, VBL’s financials display enviable strength:

• Accelerating revenue and profit growth: Q1 CY2025 results showed a stellar 29.2% year-on-year rise in revenue to ₹5,680 crore, with net profit up 35.2% at ₹726.4 crore. This performance surpassed consensus, with sustained organic volume gains (15.5% in India).
• Robust operating leverage: EBITDA rose in lockstep, while sales volumes reached a historic 312.4 million cases (+30.1% YoY), underpinning management’s ability to convert top-line momentum into meaningful bottom-line gains.
• Attractive growth trajectory: Forward estimates project 20-25% annual revenue growth for FY2025, outpacing most peers in the FMCG and consumer beverage space.
• Strategic expansion: Inorganic moves (BevCo acquisition, Morocco Cheetos licensing), large-scale domestic capacity additions, and product diversification (inroads into snacks and low-sugar/no-sugar beverages) point to a rapidly evolving, opportunity-rich business model.
• Valuation context: Trading at a P/E of 60.1 may seem elevated, yet it is justified by the company’s unparalleled growth rates, sector leadership, and operational breadth. The consensus target price factors in prospects for margin expansion and market share gains, making the current level a potential value inflection point for growth investors.
• Structural advantages: VBL’s unique positioning as PepsiCo’s largest bottler outside the US, and its extensive integrated distribution network spanning 27 states and 7 union territories, create high barriers to entry and ensure robust pricing power.

These multidimensional strengths form a case for renewed institutional and retail interest, with the current price looking increasingly disconnected from the company’s operational momentum.

Volume and Liquidity

Trading volumes remain healthy, with a 3-month average daily turnover of approximately 8.5 million shares—highlighting persistent institutional participation and active retail engagement. On recent consolidation days, volumes have held steady (7.3 million shares on May 19, 2025), a sign that investors are accumulating rather than exiting in bulk.

• Market confidence: Consistently high liquidity translates into reliable price discovery and lower transaction costs, attributes highly regarded by both short-term traders and long-term allocators.
• Float structure: Strong promoter holding is balanced by broad institutional and retail ownership, reducing volatility risks while ensuring dynamic price movement on positive catalysts.

In essence, the maintained trading volume at current supports signals market confidence and hints at underlying accumulation.

Catalysts and Positive Outlook

The investment case for VBL is augmented by a series of visible, high-impact catalysts:

• Capacity expansion: The launch of three greenfield manufacturing plants across core demand states will unlock new volume capacity in 2025 and beyond, positioning VBL to benefit from the secular rise in beverage consumption.
• International ambitions: Cross-border M&A (notably BevCo in South Africa) and the Moroccan JV for snacks provide strong non-cyclical growth drivers, expanding the company’s addressable markets.
• Portfolio diversification: Nearly half (46%) of VBL’s current sales volume stems from low and no-sugar products, aligning with evolving consumer preferences and mitigating regulatory overhangs on sugar.
• FMCG tailwinds: The Indian soft drinks and snacks market is projected to expand further due to favorable demographics, urbanization, and higher disposable incomes. VBL’s broad market footprint ensures it is ideally placed to capture incremental demand.
• Operational excellence: Continued investments in plant automation, logistics, and environmental initiatives (notably in plastic stewardship and water conservation) strengthen VBL’s credentials as a forward-looking, ESG-compliant FMCG leader.
• Dividend continuity: The declaration of an interim dividend (₹0.50 per share) reflects the company’s commitment to rewarding shareholders and signals balance sheet strength.
• Seasonality as opportunity: The imminent summer season—historically the most lucrative period for beverage producers—can further amplify near-term revenue and profitability.

Thus, VBL presents a rare combination of cyclical tailwinds and structural drivers, with each catalyst likely to trigger incremental appreciation as execution milestones are met.

Investment Strategies

For investors assessing entry, VBL’s trading profile supports multiple strategic approaches:

• Short-term positioning: The current proximity to technical support levels (₹487–₹480) and rising RSI value suggest that tactical traders could consider positions ahead of a potential technical bounce, particularly as the summer season approaches.
• Medium-term horizon: Participants with a 3–12 month view may find the ongoing capacity expansion, upcoming international launches, and expected demand surge in beverages and snacks constructively aligned for double-digit returns as the stock retraces previous resistance levels (₹520–₹575).
• Long-term accumulation: Investors seeking multi-year compounding may view this consolidation as an optimal entry for sustained exposure to India’s best-in-class beverage franchise, underpinned by durable growth, category leadership, and international expansion.

Optimal positioning is likely to be achieved by accumulating at or near current support bands, with an eye towards crystallizing gains as technical and fundamental catalysts unfold.

Is it the Right Time to Buy Varun Beverages?

Assessing the landscape holistically, several factors make a strong case for renewed interest in Varun Beverages at current levels:

• Leading organic and inorganic growth, outpacing most sector peers
• Strong volume and profit momentum backed by robust execution
• Expanding capacity and market reach both within India and internationally
• Defensible moats via integration, brand partnerships, and extensive distribution
• Supportive trading volume and liquidity reinforcing market confidence
• Multiple visible near-term and structural catalysts poised to unlock value

While headline technicals may appear subdued, such consolidations often precede major bullish reversals—especially when the fundamental narrative remains overwhelmingly positive. Given the rich pipeline of catalysts, resilient financials, and the market’s recognition of its long-term growth story, the stock appears increasingly well-positioned to enter a new phase of appreciation as the sector’s momentum resumes in 2025.

For investors seeking to participate in the secular expansion of the Indian consumer story, Varun Beverages seems to represent an excellent opportunity at current valuations—meriting close attention for portfolio inclusion as the market’s leading beverages and FMCG growth play.

This unique confluence of technical support, operational outperformance, and imminent growth triggers means Varun Beverages could well be entering a new bullish phase—one that strategic investors would be wise to watch with conviction and enthusiasm.

How to buy Varun Beverages stock in IN?

Buying Varun Beverages stock online is straightforward, safe, and accessible for all Indian investors when you choose a regulated broker. You can invest directly in Varun Beverages shares (called “spot” or “cash” buying) or trade Contracts for Difference (CFDs) on its stock price for potential leveraged gains. Each approach has its own fee structure, risk profile, and investor suitability. For both, choosing a reliable broker is crucial—keep reading for a detailed comparison of leading brokers at the end of this page.

Cash Buying

Buying Varun Beverages shares for cash means you become a real shareholder with the rights and dividends that come with owning the stock. This is the typical method for most long-term investors in India, and you’ll do this through your broker or online trading platform linked to your demat and trading account. Fees usually include a fixed commission, often around ₹20–₹30 per order (about $0.25–$0.35) with some brokers charging up to ₹100 depending on the service level.

Example

If the Varun Beverages share price is ₹494.80 and you invest ₹83,000 (approximately $1,000), you can buy about 167 shares (₹83,000 / ₹494.80 ≈ 167), considering a typical brokerage fee of ₹400 ($5). If the share price increases by 10% to around ₹544.30, your holdings will be worth ₹90,879 (167 shares × ₹544.30).

Result: That’s a gross profit of ₹7,879 (about $95), or just under 10% on your investment, before taxes and fees.

Trading via CFD

CFDs, or Contracts for Difference, allow you to speculate on Varun Beverages’ share price without owning the underlying shares. CFD brokers charge a spread (small difference between the buy and sell price) and typically an overnight financing fee if you hold leveraged positions for more than a day. CFDs also enable you to use leverage—multiplying your exposure with a smaller upfront investment, but with higher risk.

Example

Suppose you put ₹83,000 ($1,000) into a CFD with 5× leverage. This gives you market exposure of ₹415,000 ($5,000) to Varun Beverages shares. If the stock price rises by 8%, your position is up 8% × 5 = 40%.

Result: That’s a profit of ₹33,200 (about $400) on an ₹83,000 margin—excluding spread and overnight fees.

Note

While leverage can amplify gains, it also magnifies losses, so using it calls for careful risk management.

Final Advice

Before buying Varun Beverages stock, compare broker fees, account features, and available products. Brokerage costs, minimum deposit requirements, platforms, as well as the specific CFD conditions can all impact your returns. Your preferred method—cash buying versus CFD trading—should match your goals and risk appetite. For long-term investors, spot buying delivers ownership and potential dividends. Active traders seeking flexibility or leverage may prefer CFDs but should be mindful of increased risks. A detailed broker comparison is provided below to help you make a smart, secure choice for your investment journey.

Our 7 tips for buying Varun Beverages stock

The latest news about Varun Beverages

Varun Beverages delivered record Q1 CY2025 results with revenue up 29.2% YoY and net profit up 35.2% YoY.

The company’s quarterly performance beat analyst expectations, fueled by strong demand and a sharp increase in sales volumes, which grew over 30% year-on-year to 312.4 million cases. Notably, organic volume growth in India reached 15.5%, highlighting resilient domestic demand and effective market execution during the crucial pre-summer period. Despite a 20 basis points margin contraction likely attributable to inflationary pressures, absolute profitability surged, and the outlook for sustained double-digit growth remains robust as the high-demand summer season enters full swing.

Varun Beverages has initiated major expansion in India by establishing three new greenfield plants with a ₹2,800 crore investment.

The plants, located in Maharashtra, Uttar Pradesh, and Odisha, are designed to significantly increase manufacturing capacity to meet surging beverage demand in key regional markets. This expansion is expected to strengthen VBL’s presence across 27 states and 7 union territories, improve logistics efficiency, and support anticipated growth in per capita beverage consumption in India. These investments also demonstrate the company's commitment to long-term value creation and domestic job generation, further solidifying its leadership position in the fast-growing Indian non-alcoholic beverage space.

The company’s strategic focus on low and no-sugar drinks is increasingly successful, now representing 46% of total sales volume.

This product shift aligns strongly with evolving health-conscious consumer preferences in India and regulatory encouragement to reduce sugar consumption. The diversification of the portfolio toward healthier options not only mitigates future regulatory risk but also positions Varun Beverages to capture incremental market share among urban youth and wellness-oriented segments, supporting both top-line growth and market differentiation as beverage choices become increasingly scrutinized in India.

Varun Beverages declared an interim dividend of ₹0.50 per share with a recent record date of May 9, 2025, reflecting financial strength and shareholder commitment.

This payout underlines management’s confidence in the company’s cash-generating capacity, despite ongoing capital expenditures and global expansion initiatives. The dividend announcement provides a positive signal to investors about earnings visibility and operational resilience, while keeping the company attractive for institutions and individual Indian investors seeking income-generating stocks in addition to growth exposure.

Analyst sentiment remains positive, with a consensus price target of ₹643.24—approximately 30% above the current trading price.

Despite recent bearish technical indicators and the stock trading below key moving averages, fundamental outlooks remain optimistic, driven by robust revenue projections of 20-25% annual growth for FY2025, strong PepsiCo partnership, and aggressive international expansion. With the summer season typically catalyzing beverage sales and ongoing strategic investments, analysts continue to view Varun Beverages as a high-quality, growth-oriented player in both the Indian and wider emerging markets beverage segment.

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P. Laurore

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Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.