Buy Varun Beverages, target price Rs 1690: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Varun Beverages with a target price of Rs 1690. The current market price of Varun Beverages is Rs 1446.25.

Varun Beverages, incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 94052.76 Crore) operating in FMCG sector.

Varun Beverages key Products/Revenue Segments include Beverages, Other Operating Revenue, Other Services for the year ending 31-Dec-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 3903.11 Crore, up 75.54 % from last quarter Total Income of Rs 2223.48 Crore and up 37.63 % from last year same quarter Total Income of Rs 2835.98 Crore. Company has reported net profit after tax of Rs 438.60 Crore in latest quarter.

The company’s top management includes Mr.Ravi Kant Jaipuria, Mr.Varun Jaipuria, Mr.Raj Pal Gandhi, Mr.Rajinder Jeet Singh Bagga, Dr.Naresh Kumar Trehan, Mr.Pradeep Sardana, Ms.Sita Khosla, Dr.Ravi Gupta, Ms.Rashmi Dhariwal. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 65 Crore shares outstanding.

Investment Rationale
Factoring in 1QCY23 performance, the brokerage raises its CY23/CY24 earnings estimates by 6%/3% on the back of better-than-expected realization and margins.

Promoter/FII Holdings
Promoters held 63.9 per cent stake in the company as of 31-Mar-2023, while FIIs owned 26.0 per cent, DIIs 3.65 per cent.