Axis Securities Names Varun Beverages as Pick of the Week with Buy Rating and Rs 500 Target
World Finance
Axis Securities selected Varun Beverages Ltd. (VBL) as its “Pick of the Week,” with a BUY call. The brokerage set a target price of Rs 500. It compared this with a current market price of Rs 454.3. Axis Securities also used an investment horizon of six to nine months.
On February 23, 2026, Varun Beverages opened at Rs 457.55, above the prior close. The stock touched Rs 459.15 during the morning session. It later eased to Rs 454.55. By midday, 771,590 shares traded, while the price stayed 0.32% higher.
Axis Securities linked the view to VBL’s scale and overseas growth. Varun Beverages is one of PepsiCo’s largest franchise partners outside the US. The analysts wrote, “VBL remains well positioned to sustain strong growth, supported by the BevCo acquisition in South Africa and DRC, expansion of its snacks business in Africa, deeper rural penetration, and ongoing capacity additions. Further, scaling high-margin brands like Sting and sharpening focus on value-added beverages are expected to drive steady revenue and margin expansion. We expect Revenue/EBITDA/PAT to grow at 19%/20%/26% CAGR over CY24-27E,” commented the research analysts of Axis Securities.
Quarterly volume trends remained a key support in the note. In Q4CY25, consolidated volumes increased 10.2% YoY to 237 Mn cases. India led with 10.5% growth. International markets rose 10%. Axis Securities said the domestic business rebounded, helped by distribution and brands.
Seasonality also mattered for near-term demand. Axis Securities pointed to the start of the summer season. It saw this as a demand catalyst for Varun Beverages. The firm also highlighted steady volume momentum across regions. This backed its view of VBL as a growth-led FMCG player.
Capacity additions formed the second pillar of the argument. Varun Beverages commissioned four new greenfield plants in high-growth regions. It also carried out brownfield expansions across key locations. Axis Securities said these steps improved scale. It also expected better logistics efficiency from the wider footprint.
Overseas, VBL expanded beyond beverages through snacks. The Morocco snacks facility became fully operational. The Zimbabwe plant moved close to commissioning. Axis Securities viewed these moves as supporting portfolio diversification. It also tied this to growth opportunities in African markets.
Varun Beverages also planned a beer distribution pilot in Southern Africa. VBL planned to pilot Carlsberg under an exclusive distribution tie-up. Axis Securities said existing infrastructure and supportive regulations helped. It described the approach as low-capex and test-and-learn. The move added another potential lever for diversification.
Market valuation and size indicators stayed elevated. Varun Beverages had a market capitalisation of Rs 1,54,054 crores. Trailing twelve-month EPS stood at Rs 8.98. The P/E Ratio was 50.71. On the NSE, the share price was Rs 455.30 at 11:35 AM IST on February 23, 2026.
| Metric | Value |
|---|---|
| NSE price (11:35 AM IST, February 23, 2026) | Rs 455.30 |
| Open (February 23, 2026) | Rs 457.55 |
| Intraday high | Rs 459.15 |
| Intraday low | Rs 454.55 |
| Midday volume | 771,590 shares |
| Market capitalisation | Rs 1,54,054 crores |
| TTM EPS | Rs 8.98 |
| P/E Ratio | 50.71 |
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Axis Securities based its BUY stance on volumes, capacity, and new categories. It cited Q4CY25 volumes of 237 Mn cases and summer-led demand. It also flagged greenfield and brownfield expansion, plus snacks progress in Africa. The brokerage kept its target price at Rs 500, against Rs 454.3.
