Varun Beverages Q3 Review- Strong Volume Growth, Improving Margins Underpin The Overall Performance: DRChoksey

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..Deven Choksey Research Report.Varun Beverages Ltd. showcased a healthy performance in Q3 CY24 results, which outperformed our estimates across the board. • Consolidated revenue stood at Rs 48,047 million, grew by 24.1% YoY, outperformed our estimate by 3.6%. The revenue growth was driven by expanded distribution network, increased product penetration and favorable demand trends in key markets. Ebitda reached to Rs 11,511 million, grew by 30.5% YoY, bet our estimate. The growth was led by better operating performance. The corresponding Ebitda margin improved by 117 bps YoY to 24.0%. PAT stood at Rs 6,196 million, reporting a growth of 23.7% YoY, which surpassed our estimate. Mainly due to better operating performance and lower than expected tax expenses. We maintain our CY26E adjusted earnings per share, mainly due to strong revenue growth, geographic expansion, and cost efficiencies. We reiterate our Buy rating, valuing the company with a maintained PE multiple of 57 times on a CY26E EPS of Rs 12.9. Consequently, we arrive at a target price of Rs 738, indicating an upside of 24% from the current market price..Click on the attachment to read the full report: .Varun Beverages Q3 Results: Profit Rises 22%, Beats Estimates.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 Q3 Review- Strong Volume Growth, Improving Margins Underpin The Overall Performance: DRChoksey

The brokerage reiterates 'Buy' rating on the stock.

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Varun Beverages Q3 Review- Strong Volume Growth, Improving Margins Underpin The Overall Performance: DRChoksey

The brokerage reiterates 'Buy' rating on the stock.

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