Varun Beverages share price traded downwards on Wednesday, ending the day at -0.2% with the price at Rs 476. The stock has had a rough ride this year and is down by 15% in the last month. In addition, it trades below key indicative moving averages, including the 20, 50 and 200 daily moving averages on the daily chart underscoring a strong downward momentum.
Despite its decline, analysts at Jefferys have an upbeat view of Varun Beverages share price. The firm has a “buy” rating on the stock, with a price target of Rs 715. That implies a 50% upside on Varun Beverages (NSE: VBL) share price. Another brokerage firm, CLSA, has a higher price target of Rs 770, which is a 61% upside on the share price.
The stock’s struggles at the NSE are not entirely a company-specific problem, but a reflection of the downward pressure on the broader Indian equities market ecosystem. The Nifty 50 Index and Sensex Index have both declined by more than 4% in the last month and are down by 5.5% year-to-date.
Nonetheless, Varun Beverages remains in a strong position to continue building on its strong fundamentals carried forward from 2024. The company reported net revenues of Rs 3,688.79 crore for the quarter ending December 2024, up from Rs 2,730.98 crore from the corresponding quarter a year earlier. Net profit rose by 36.1 to Rs 195.64 crore, underlining a strong balance sheet.
Varun Beverages Share Price Prediction
The momentum on Varun Beverages favours the sellers to be in control as resistance is at Rs 486. The stock will likely move lower to find initial support at Rs 467. However, an extended control by the sellers will break above that level and potentially test Rs 448.
On the other hand, the momentum could shift to the upside if the price breaks above Rs 486. That could see the first resistance come at Rs 502, but an extended control by the buyers could lead to further gains to test Rs 520.
