Update shared on 18 Dec 2025
Analysts have modestly revised their price target for Varun Beverages to Rs 597.52, reflecting largely unchanged views on long term revenue growth, margins, and valuation multiples, while still seeing upside supported by the company’s consistent execution.
What's in the News
- Incorporated a wholly owned subsidiary, VBL Industries (Kenya) Ltd, to manufacture, distribute and sell beverages in Kenya, marking a key step in Africa focused expansion (company filing).
- Shareholders to vote via postal ballot on November 29, 2025, on altering the Object Clause of the Memorandum of Association to enable new business activities (shareholder notice).
- Added alcoholic beverage and ready to drink alcoholic products to the Main Objects of the Memorandum of Association, opening a potential new growth vertical in India and abroad (regulatory disclosure).
- Formed joint venture White Peak Refrigeration Private Limited with Everest International Holdings Limited to manufacture visi coolers and other refrigeration equipment in India, strengthening cold chain capabilities (company announcement).
- Board meeting on October 29, 2025, to review Q3 and nine month unaudited results and evaluate key proposals on Kenya expansion and MOA changes, outlining the current strategic actions (board agenda).
Valuation Changes
- Fair Value: Unchanged at ₹597.52, indicating no revision to the intrinsic value estimate.
- Discount Rate: Stable at 12.76 percent, suggesting no change in perceived risk profile or cost of capital.
- Revenue Growth: Adjusted only at the fourth decimal place to 15.13 percent, effectively unchanged from the prior assumption.
- Net Profit Margin: Marginally fine tuned to 14.08 percent, with no meaningful directional change to profitability expectations.
- Future P/E: Held steady at about 63.89x, reflecting consistent expectations for the company’s long term valuation multiple.
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