Buy Varun Beverages, target price Rs 1145: Motilal Oswal

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Buy Varun Beverages, target price Rs 1145:  Motilal Oswal


Motilal Oswal has buy call on with a target price of Rs 1145. The current market price of Varun Beverages Ltd. is Rs 1005.15.

Varun Beverages Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 28684.11 Crore) operating in FMCG sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 1336.46 Crore, down -26.00 % from last quarter Total Income of Rs 1806.11 Crore and up 6.39 % from last year same quarter Total Income of Rs 1256.23 Crore. Company reported net profit after tax of Rs -7.24 Crore in latest quarter.

Investment Rationale
The brokerage expects revenue/EBITDA/PAT CAGR of 28%/36%/64% over CY20-22E. It values the stock at 31x CY22E EPS. It’s TP of INR1,145 per share implies 15% upside.


Promoter/FII Holdings
Promoters held 66.4 per cent stake in the company as of Sept 30, 2020, while FIIs held 20.5 per cent, DIIs 5.9 per cent and public and others 7.3 per cent.



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