CY24 was a transformative year for Varun Beverages Limited (VBL), marked by strong growth, global expansion, and unwavering sustainability commitments. The company continued its upward trajectory, strengthening its market leadership in India and internationally, all while maintaining operational excellence and a futureready approach. Let us dive into the key highlights from the past year.
We expect VBL to maintain its growth momentum, aided by: 1) strengthening its foothold in Africa, 2) expanding into snacks to diversify its revenue stream, 3) investing in new greenfield facilities, and 4) focusing on new product launches.
Factoring in strong fundamentals and potential for future growth, we build in 18%16%/27% revenue/EBITDA/PAT CAGR over CY24-26 and reiterate our BUY rating for the stock. We value the stock at 55x Mar’27E EPS to arrive at a TP of INR680.