Varun Beverages Share Price May Jump 23%; CLSA Sets ₹654 Target

Varun Beverages shares are back in focus this week following a positive outlook from global brokerage CLSA, which forecasts a strong upside for the stock. According to today’s latest market update, the company’s shares saw a slight increase, while the broader market remained under pressure, reflecting growing investor confidence due to recent business developments.

On June 19, Varun Beverages stock was trading at around ₹532.70, a marginal gain of 0.22% during the day. This comes at a time when the Indian equity market witnessed a sharp correction, snapping a five-day rally. Despite this weakness in the overall market, the stock remained in positive territory, indicating strong investor sentiment and continued buying interest in the short term.

According to CLSA’s latest report, the stock has the potential to rise approximately 23% from current levels, with a target price of ₹654 per share. The brokerage believes that the company’s recent strategic moves could significantly improve its long-term growth outlook. This positive sentiment is also supported by broad analyst sentiment, as most market experts remain bullish on the stock.

A key driver behind this expectation is the company’s new agreement with Japan’s Asahi Group Holdings. Recently, Varun Beverages announced a partnership to manufacture, distribute, and sell the popular Calpis beverage in India. This beverage, which has over 100 years of heritage in Japan, is expected to help the company expand its product range and attract new consumer segments in the country.

Under this deal, Asahi will handle product development and provide technical expertise, while Varun Beverages will handle marketing, distribution, and brand management in India. This structure allows both companies to focus on their strengths, which can improve execution and accelerate market penetration. This partnership is also expected to enhance Varun’s ability to offer innovative beverage products specifically for Indian consumers.

The company’s recent financial results have further strengthened investor confidence. In the March quarter, Varun Beverages reported a 20% increase in net profit to ₹872 crore, while revenue increased 18.3%. This consistent growth reflects strong demand and efficient operations, even as competition in the beverage sector continues to intensify.

CLSA also stated that this partnership will help the company expand its manufacturing capacity and distribution network, including investments in cold-chain infrastructure. Of the 28 analysts tracking the stock, 24 have a “buy” rating, while only 4 have a “hold” recommendation. Over the past month, the stock has already gained about 8.7%, indicating a continued upward trend despite short-term market fluctuations.