Varun Beverages appears to be on a roll at Dalal Street. The Gurugram-based company's shares jumped, making remarkable gains at the halfway mark.
BoFA Issues Buy Call For Varun Beverages
This development came to pass after the Bank of America Securities issued a 'Buy Call' for the multinational bottle and beverage distribution company.
According to the American agency, Varun Beverages's recent developments indicate strong demand in the sector. In addition, the company's business fundamentals remain strong.
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The BoFA Securities also issued a target of Rs 1,840 per share. The current price stands at around Rs 1,550.05. |
Healthy Business Outlook
BoFA also said that they believe the pullback after results is an enhanced buying opportunity. According to the same outlook for the company, it indicates healthy momentum. In addition, the outlook also sees an upside from distribution, expansion and new products, which also include the inclusion of sports/energy drinks.
The BoFA Securities also issued a target of Rs 1,840 per share. The current price stands at around Rs 1,550.05.
The company shares, which were listed on the equity markets in 2016, have done reasonably well over the past year. The company gained 24.75 per cent in the past year .
Varun Beverages Shares Rise
This growth of the company, which is the largest bottling company for Pepsico outside the United States, is attributed to its recent expansion. According to reports, the beverage company has expanded to new territories, including South Africa and Congo.
In the final quarter of FY24, the company raked in Rs 4,397.98 crore in its total revenue and its operating income stood at Rs 801.25 crore.
The company shares opened on a cautious note and have maintained a steady surge in value. On Wednesday, August 21, at 12:57 IST, Varun Beverages shares jumped by 3.55 per cent or Rs 53.00, taking the overall value of share prices to Rs 1,544.60.
