The company had announced on Tuesday that the consummation date of the share purchase agreement between itself and Ghana Bottling Co. to acquire a 100% stake in SBC Beverages Ghana for ₹127.1 crore has been extended to March 31, 2025, instead of February 28, 2025, as was earlier declared at the time of the acquisition announcement in November last year.
With today’s fall, shares of Varun Beverages have corrected over 31% so far in 2025. The stock has never delivered negative annual returns since it listed in 2016.
Brokerage firm HSBC maintained its “buy” rating on Varun Beverages earlier this month with a price target of ₹670 per share. It said that a net cash position opens up strategic options for the company. This implies a potential upside of 50% from current levels for the stock
However, HSBC’s price target for Varun Beverages is not the highest on the street for the stock. Both Emkay and CLSA have price targets in excess of ₹802 and ₹800 on the stock, which implies a potential upside of 80% from current levels.
Brokerages like JPMorgan, Jefferies and Axis Capital also have price targets in excess of ₹700 for Varun Beverages.
Out of the 26 analysts that have coverage on Varun Beverages, 23 of them have a “buy” rating, while the other three have a “hold” recommendation. No analyst has a “sell” rating on Varun Beverages.
Shares of Varun Beverages are trading 6.3% lower on Thursday at ₹446.45. The stock has declined 15% so far in February.
