Update shared on 04 Dec 2025
Analysts have modestly adjusted their price target on Varun Beverages to ₹597.52, reflecting largely unchanged assumptions on discount rate, revenue growth, profit margin, and future valuation multiples. The revision signals continued confidence in the company’s earnings trajectory.
What's in the News
- Board approves plans to incorporate a wholly owned subsidiary in Kenya to manufacture, distribute, and sell beverages, expanding Varun Beverages geographic footprint in Africa (company filing).
- Company formalizes the incorporation of VBL Industries Kenya Ltd as a wholly owned subsidiary to undertake beverage manufacturing and distribution in the Kenyan market (company announcement).
- Memorandum of Association amended to add alcoholic beverages and ready to drink products, including beer, wine, and spirits, signaling a planned entry into alcohol and RTD categories in India and abroad (company disclosure).
- Special shareholders meeting scheduled via postal ballot on November 29, 2025, to approve changes to the Object Clause of the Memorandum of Association, including the new alcoholic beverages focus (meeting notice).
- Joint venture White Peak Refrigeration Private Limited formed with Everest International Holdings to manufacture visi coolers and refrigeration equipment in India, strengthening cold chain capabilities (JV announcement).
Valuation Changes
- Fair Value: Unchanged at ₹597.52 per share, indicating no revision to the intrinsic value estimate.
- Discount Rate: Stable at 12.76 percent, reflecting no change in perceived risk or cost of capital assumptions.
- Revenue Growth: Effectively unchanged, remaining around 15.13 percent, with only an immaterial numerical rounding adjustment.
- Net Profit Margin: Maintained at approximately 14.08 percent, with negligible recalibration at the decimal level.
- Future P/E: Steady at about 63.89x, indicating no shift in long term valuation multiple expectations.
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