Shares of Varun Beverages Ltd (VBL), a key bottler for PepsiCo, have shown a modest recovery recently, bringing some relief to shareholders who have faced significant losses over the past two years. Despite a 5% increase in the last two weeks, the stock is still trading lower than its 52-week high of Rs 555.60 recorded on June 17 this year.
As of November 12, 2026, Varun Beverages shares were trading flat at Rs 434, giving the company a market capitalization of Rs 1.46 lakh crore. The recent uptick comes after a challenging period where the stock registered losses of 11% over six months, 6% over one year, and a substantial 26% over two years. The year-to-date correction of 12% indicates the stock is on track for a second consecutive annual decline, having closed 23.14% lower in 2025.
Brokerage Outlook and Price Targets
Several leading brokerages have weighed in on Varun Beverages shares, presenting a mixed but generally optimistic long-term view despite the short-to-medium term underperformance.
Axis Securities Maintains 'Buy' Rating
Axis Securities has reiterated its 'buy' recommendation for VBL, setting a price target of Rs 515. The brokerage highlights a favorable risk-reward profile and points to VBL’s strategic growth opportunities. These include an expanded partnership with PepsiCo, aggressive expansion into African markets, and diversification into new product categories and adjacencies, all of which are expected to drive long-term value.
Choice Broking Adjusts Target Amid Raw Material Headwinds
Choice Broking also maintains a 'buy' rating, although it has revised its target price downwards to Rs 460 from an earlier Rs 550. This adjustment reflects a 10% and 6% cut in their CY26/CY27E earnings estimates, primarily due to the impact of higher raw material inflation. Nonetheless, Choice Broking anticipates VBL will sustain healthy volume growth, projecting double-digit long-term growth potential across both India and Africa. India's growth is expected to be fueled by distribution expansion, premiumization efforts, and product innovation, while international growth will benefit from capacity expansion and robust demand in key African markets.
Other Major Brokerages
- HSBC: Holds a 'hold' call on the stock with a price target of Rs 540.
- JP Morgan: Has an 'overweight' call, setting a target price of Rs 490.
- Citi: Recommends a 'buy' rating with a target price of Rs 550.
- Kotak: Also has a 'buy' call, with a target price of Rs 515.
Varun Beverages operates as a franchisee of PepsiCo, responsible for producing and distributing a wide array of carbonated soft drinks (CSDs), non-carbonated beverages (NCBs), and packaged drinking water under PepsiCo's trademarks.