Varun Beverages - Expanding Its Footing In The African Market: Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.We believe Varun Beverages Ltd.'s acquisition of BevCo provides a much-needed thrust to expand its geographical footprint in Africa coupled with the expansion of other businesses – energy business, dairy and Juice would be key growth drivers for the company in the coming years. Moreover, Varun Beverages is a strong candidate in the entire fmcg space on account of-Normalcy of operations and market share gains in newly acquired territories (post Covid-19 disruptions), the management’s continued focus on the efficient go-to-market execution in acquired and underpenetrated territories especially in rural markets, expansion of its distribution reach to 3.5 million outlets in CY23 from three million currently, focus on expanding high-margin Sting energy drink across outlets coupled with increased focus on expansion of value-added Dairy, Sports drink (Gatorade), and Juice segment..Varun Beverages has been in our top picks portfolio since long and we continue to remain positive on the stock on a mid to long-term basis. We estimate revenue/Ebitda/profit after tax compound annual growth rate of 23%/30%/35% over CY22-25E as we revised our CY24-25 PAT estimates upwards by 5%/12% based on the abovementioned rationales. We maintain our 'Buy' rating on the stock with the revised target price of Rs 1,450/share (47 times CY25 earnings per share) versus the earlier target price of Rs 1,200/share (45 times CY25 EPS), implying an upside of 24% from the current market price..Click on the attachment to read the full report:.Varun Beverages - Expanding Global Presence With Acquisition In South Africa: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Varun Beverages - Expanding Its Footing In The African Market: Axis Securities

We believe Varun Beverages' acquisition of BevCo provides a much-needed thrust to expand its geographical footprint in Africa coupled with the expansion of other businesses

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Varun Beverages - Expanding Its Footing In The African Market: Axis Securities

We believe Varun Beverages' acquisition of BevCo provides a much-needed thrust to expand its geographical footprint in Africa coupled with the expansion of other businesses

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