Varun Beverages shares: Rerating candidate? What analysts say on Carlsberg pact, muted Q3

Varun Beverages’ (VBL) Q3 performance was muted but largely in line with expectations, with revenue up 2 per cent year-on-year amid a prolonged monsoon across India. Consolidated volumes grew 2.4 per cent YoY, while Ebitda margins contracted about 50 basis points to 23.4 per cent. Despite this, analysts largely retained their bullish calls on the stock, citing entry into the AlcoBev segment and revival in volume growth. Advertisement

Calling the Pepsico bottler a rerating candidate, Emkay Global suggested a 'Buy' on VBL, as it revising its target price by 6 per cent to Rs 575. The target revision has been driven near-equally by estimate revision on revenue and Ebitda and TAM expansion with entry into the AlcoBev space in Africa.

"Encouragingly, the double-digit volume growth has also r