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Investing.com - Jefferies raised its price target on Varun Beverages Ltd (NS:VBL) to INR600.00 from INR560.00 while maintaining a Buy rating on the stock.
The beverage company’s volumes were impacted by unseasonal rains in India during the second quarter, according to Jefferies’ analysis.
Despite volume challenges, Varun Beverages delivered better-than-expected second-quarter earnings due to improved margins, with Jefferies noting that some cost-saving initiatives implemented by the company are sustainable and should provide benefits going forward.
Jefferies indicated that competition does not appear to be a significant concern for Varun Beverages, and the company’s management expressed positive sentiment during their conference call.
The research firm recently highlighted Varun Beverages as an "interesting contra idea" in the Fast-Moving Consumer Goods (FMCG) sector, a view that Jefferies maintains following this earnings report.
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