Latest news with #VarunBeverages
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Business Standard
4 days ago
- Business
- Business Standard
Trent, NTPC, JSW Energy, VBL among 7 top stock ideas by Axis Securities
Domestic brokerage firm - Axis Securities in 3 separate research reports titled 'Top Conviction Ideas' dated June 5, 2025, has recommended 2 stocks each from the FMCG and retail sector; and 3 stocks from the power & utilities based on the recent March quarter earnings and future growth potential. Here's a summary of these stock ideas. FMCG stocks ideas Axis Securities in its report on FMCG top conviction ideas, said that while Q4 remained challenging for the FMCG firms, company managements have indicated a potential recovery beginning in H2FY26, supported by expected interest rate cuts and tax benefits, which will aid urban consumption, an above-normal rainfall, improving sowing patterns and rural demand and continued focus on cost rationalisation and efficiency. Further, rural demand showed early signs of recovery, supported by easing inflation, higher Minimum Support Prices (MSPs), increased government spending, and a promising monsoon outlook. The brokerage firm expects volume growth and margin expansion to gather pace gradually over the next 2–3 quarters amid hopes of Indian consumers rapidly shifting toward higher-end premium products and room for growth in underpenetrated markets - especially Tier 3+ towns. As such, Axis Securities recommends a 'Buy' on Varun Beverages (VBL) and DOMS Industries with a target price of ₹650 and ₹2,820, respectively. ALSO READ | Top buy ideas in Retail space Among retail-related stocks, Axis Securities recommends Trent and Ethos as its top picks with a target price of ₹6,650 and ₹3,150, respectively. The brokerage firm believes the retail sector is a compelling investment opportunity due to several factors. India's retail market is undergoing rapid formalisation, with significant opportunities emerging in smaller cities and towns that are largely unorganised. The increasing disposable income of consumers is leading to a noticeable shift towards branded products. Smaller cities and towns are outpacing metros in growth across categories such as apparel, QSR, and footwear, fueled by rising aspirations for branded products and increased disposable income. This structural growth story is expected to continue. Axis Securities expects rural demand to pick up steadily, supported by increased government spending and urban remittances, coupled with an eventual receding of consumer price inflation and stable raw material prices. ALSO READ | GRSE, BDL among 9 defence stocks up over 70% in 2 months; time to book gains? Stocks to buy from Power & Utilities sector The Power & Utilities sector showcased healthy financial health, margin expansion, and operational excellence led by NTPC, said Axis Securities in its report titled 'Top Conviction Ideas - Power and Utilities'. The outlook for the Power & Utilities sector remains positive as electricity demand is consistently improving. The Central Electricity Authority (CEA) projects a peak demand requirement of 366 GW by FY32, necessitating substantial capacity enhancements in both thermal and renewable energy. Among its top picks, it expects NTPC to rally to ₹400-mark; JSW Energy with a target price of ₹705 and Skipper with ₹570 are the top bets in the power & utilities sector. ALSO READ |
Business Upturn
29-05-2025
- Business
- Business Upturn
Stocks to watch on May 29: SAIL, IRCTC, IndusInd Bank, Nuvama, Max Financial in focus
Indian equity markets are likely to react to a slew of corporate developments and earnings reports on Thursday. Here's a curated list of key stocks and shares to watch today based on operational performance, strategic announcements, and regulatory actions. Shares showing operational strength and growth momentum SAIL share surges on volume beat and debt reduction Steel Authority of India Ltd (SAIL) reported a 17% YoY volume growth in Q4FY25, far exceeding the 10% estimate. The state-run steelmaker also saw a sequential decline in net debt, signaling improved balance sheet health. IRCTC stock gains as ticketing margin tops 82% IRCTC posted a 6.4% YoY rise in EBITDA, with revenues climbing 10%. Notably, the ticketing division's margin exceeded 82%, highlighting strong operational leverage in the business. Cummins share on radar as FY25 guidance met Cummins India met its double-digit revenue growth guidance for FY25, supported by a 9% YoY rise in exports, reinforcing investor confidence in its global demand resilience. Varun Beverages share active on new production milestone Varun Beverages began commercial production at its new Meghalaya facility. The strategic expansion supports supply chain efficiency in the northeast region. Welspun Corp stock gains on robust EBITDA growth The company posted a 39% YoY increase in EBITDA with margins improving to 11.7% from 7.4%, reflecting stronger profitability in the steel pipes and plates segment. Avanti Feeds share rises on margin expansion The company posted a 36.4% YoY rise in EBITDA while margins improved to 12.76% from 10.09%, driven by better realizations and operational efficiencies. Deepak Nitrite stock firm after Q4 beat Deepak Nitrite reported a 5% YoY rise in EBITDA, with margins improving slightly to 14.52% versus 14.16%, indicating stable performance across core segments. Mishra Dhatu share up on margin expansion Midhani reported a 16.2% YoY increase in EBITDA while margins rose to 22.75% from 19.83%, supported by a better product mix and cost controls. RITES signs MoU with Shree Cement RITES stock could see traction after it signed an MoU with Shree Cement to develop rail infrastructure and allied services, boosting future revenue visibility. Som Distilleries stock up on profit rise The firm reported an 18.5% YoY increase in net profit and margin expansion to 12.34%, driven by increased consumption trends and price optimization. Prestige Estates share in focus post project completions Prestige announced the completion of three residential and commercial projects in Mumbai, adding 700 homes and 130 office units to its portfolio. HG Infra shares may react to Gujarat energy project LoI HG Infra received a Letter of Intent from Gujarat Urja Vikas Nigam for 300 MW/600 MWH battery storage projects, supporting long-term EPC order flow. TVS Supply Chain share edges higher on EBITDA rise The company reported a 2.5% YoY increase in EBITDA and 3% growth in revenues, reflecting steady performance across logistics operations. Hinduja Global share firm as margins improve HGS posted 5.6% YoY revenue growth and margin improvement to 12.3%, driven by its digital business process transformation initiatives. Shares under pressure from weak earnings or regulatory concerns IndusInd Bank stock in spotlight after SEBI action SEBI barred the bank's former CEO, Deputy CEO, and three others for insider trading. Significant monetary penalties and reputational risk may weigh on the stock. Max Financial share may dip as Axis Max Life CEO retires early Prashant Tripathy, MD & CEO of Axis Max Life, announced early retirement, raising concerns over succession planning at a key partner of Max Financial. Biralsoft share drops on weak revenue performance The company reported a 5.3% QoQ decline in constant currency revenue, marking the second straight quarter of decline, raising growth concerns. Bata share slides as profit falls 27.8% YoY Footwear major Bata reported a 2.7% drop in EBITDA and a significant 27.8% decline in net profit YoY, suggesting margin pressures and tepid demand. Cohance Life share falls on margin contraction Cohance Life saw its profit decline 24% YoY and EBITDA margins fall to 18.3% from 29%, pointing to input cost pressures and subdued operating leverage. Natco Pharma stock in red after missing analyst estimates Natco Pharma posted lower-than-expected Q4 numbers with margin decline to 44.9% from 46.6%, which may dampen investor sentiment. Nuvama share dips as margin narrows despite stable profit Nuvama's EBITDA margin dropped 492 basis points QoQ while EBITDA fell 1%, indicating increased operating expenses despite steady topline. Heidelberg Cement share weak after muted quarter The company posted a 3% YoY decline in profit and a slight margin dip to 14.79% from 14.89%, reflecting cost headwinds in the construction cycle. Bharat Rasayan share under pressure on steep margin fall EBITDA dropped 42% YoY with margins contracting sharply to 13.12% from 22.37%, highlighting input cost pressures and possible volume declines. Balaji Amines share down on profitability decline The company saw EBITDA fall 39% YoY and margins decline to 16.91% from 23.61%, indicating demand softness and higher input costs. Radico Khaitan stock hit after pulling 'TRIKĀL' brand The liquor major decided to withdraw its 'TRIKĀL' brand post internal review, raising questions over product strategy and brand execution. NACL share slides into loss territory NACL reported an EBITDA loss for the quarter as revenues plummeted 56% YoY, pointing to serious operational headwinds. Disclaimer: The above stock analysis is based on publicly available data and brokerage commentary. It does not constitute investment advice. Investors should consult their financial advisor before making investment decisions.
Time of India
27-05-2025
- Business
- Time of India
Goldman Sachs sees 22% upside in Varun Beverages, starts coverage with Buy on long-term growth potential
Goldman Sachs has initiated coverage on Varun Beverages with a 'buy' rating and a target price of Rs 600, citing strong execution and long-term growth potential in India's underpenetrated ready-to-drink (RTD) beverage market. The Pepsi bottler's shares climbed as much as 1.9% to Rs 491.75 on Tuesday following the call. The brokerage said the company is well-positioned to 'unlock market potential through superior execution' as India's per capita consumption of ready-to-drink (RTD) beverages remains among the lowest globally. Goldman Sachs's target price of Rs 600 implies a potential upside of 22% from current levels. Goldman Sachs highlighted that India offers high growth headroom in the RTD category, with Varun Beverages (VBL) emerging as a key beneficiary due to its strong execution and increasing market share. The company has expanded Pepsi's share in India's soft drinks market from 28% in 2015 to 38% in 2024, according to the brokerage. "Expect VBL to continue gain share driven by high market share in the fastest growing segments like energy drinks and hydration,' Goldman Sachs said in its note. It added that VBL's earnings compound annual growth rate is likely to outpace the sector average, "implying relatively attractive risk reward." The brokerage also dismissed potential threats from new entrants like Campa Cola. 'Our scenario analysis to assess the impact of new entrant 'Campa Cola' indicates no disruptive impact on VBL,' Goldman Sachs said. The confidence stems from VBL's strong distribution network and product mix in segments that are seeing the fastest expansion. Goldman Sachs believes this puts the company on a strong footing to ride the next wave of growth in India's under-penetrated RTD market. Also read | IndiGo shares slip 3% as co-founder Rakesh Gangwal likely offloads Rs 11,988 crore stake via block deal Solid financials back optimism Varun Beverages reported a 35% year-on-year rise in net profit for the first quarter of the calendar year, with consolidated profit reaching Rs 726.49 crore compared to Rs 537.27 crore a year earlier. The company follows a January-December fiscal calendar. The board has also approved an interim dividend of Rs 0.50 per share. With robust earnings momentum and favourable sector dynamics, Goldman Sachs' bullish call positions Varun Beverages as a top pick in India's consumer space. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
25-05-2025
- Business
- Time of India
Major investments proposed in healthcare, industry as top business leaders meet CM Vishnu Deo
Chief Minister Vishnu Deo Sai met with Dr. Naresh Trehan of Medanta Hospital and Ravi Jaipuria of Varun Beverages in New Delhi. RAIPUR: Two prominent industrial groups met Chief Minister Vishnu Deo Sai at Chhattisgarh Bhavan in New Delhi on Saturday, proposing major investments in the state's healthcare and industrial sectors. Dr Naresh Trehan, founder of Medanta Hospital and a renowned cardiologist, proposed building a multi-speciality hospital in Raipur. He said the project would involve an investment of Rs 500 crore. The hospital will have advanced medical technology, expert doctors, research and training facilities. Ravi Jaipuria, Chairman of Varun Beverages Limited, proposed setting up a carbonated soft drinks and fruit juice manufacturing plant in Raipur. This project involves an investment exceeding Rs 250 crore. It is expected to accelerate industrial growth in the state and generate employment. The Chief Minister welcomed both proposals. He assured that the Chhattisgarh government would provide all possible support for quality investments in healthcare and industry. He said the state government would consider these projects earnestly and extend all necessary assistance, which would benefit the public and create employment for the youth
Time of India
19-05-2025
- Business
- Time of India
Varun Beverages to acquire 50% stake of Sri Lanka's Everest Industrial for $3.75 mn
Varun Beverages on Monday announced the acquisition of a 50% stake in Everest Industrial Lanka (Private) Limited ( EIL ) for a consideration of USD 3.75 million (approximately INR 320.88 million) following the approval of board of directors. In an exchange filing, the company stated, 'EIL, a company in Sri Lanka, is engaged in the business of production, manufacturing, distribution, and selling of commercial visi-coolers and related accessories.' This strategic move is expected to enhance Varun Beverages' supply chain capabilities and expand its footprint in the South Asian market.
