India's Varun Beverages jumps on Q1 profit beat, top gainer in FMCG index

Varun Beverages

14/05/2024 05:42

** Shares of Varun Beverages  VARB.NS  rise as much as 5.5%
to 1,559 rupees
    ** Stock top gainer in FMCG index  .NIFTYFMCG , which is
currently flat
    ** Pepsi bottler beat March-qtr profit estimates on Monday
        ** Jefferies says co's gross margin better than
expected, rising 390 bps YoY on lower raw material prices,
efforts to reduce sugar content and implement lightweight
packaging
  
    ** Expect next quarter to be strong with harsh summer season
aiding impulse beverage purchases - CLSA
    ** Analysts' avg rating "buy"; median PT 1,612.50 rupees -
LSEG data
        ** Stock second-most expensive with fwd 12-mth PE ratio
of 67.4 on 15-member FMCG index
  
        ** Stock up 21.8% so far in 2024, biggest YTD gainer in
FMCG index
  


 (Reporting by Navamya Ganesh Acharya in Bengaluru)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))