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CLSA maintains buy on Varun Beverages, target price Rs 860

Buy Varun Beverages Ltd. at a price target of Rs 860.0 .|
Updated: Nov 06, 2019, 08.47 AM IST
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CLSA has maintained buy rating on Varun Beverages in the long term with a target price of Rs 860. The stock ended up 11.4% at Rs 701.80 on Tuesday while the BSE Sensex closed 53.73 points down at 40,248.23.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 1739.73 crore, down -38.10% from last quarter sales of Rs 2810.45 crore and up 49.24% from last year same quarter sales of Rs 1165.74 crore. The company has reported net profit after tax of Rs 78.89 crore in the latest quarter.

Investment Rationale

Varun Beverages remains CLSA's preferred pick given strong growth momentum, upside from recently concluded acquisitions, and financial leverage. Weak season, sharp rise in input prices and aggressive international acquisition are key risks, the brokerage said.

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Disclaimer: This recommendation is analyst's own and does not represent those of & Please consult your financial advisor before taking any position in the stock/s mentioned.

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