Goldman Sachs starts India's Varun Beverages with 'buy'

Goldman Sachs initiates coverage on Varun Beverages VARB.NS with "buy" and PT of 600 rupees

Pepsi's PEP.O India bottler has multiple drivers to outperform the country's fast-growing ready-to-drink beverages market, says Goldman Sachs

VARB's execution has led to Pepsi's market share in India growing to 38% in 2024, from 28% in 2015, making India one of Pepsi's top-performing markets worldwide - GS

Stock trading 0.3% lower on the day

Brokerage expects VARB to continue to gain market share in fast-growing segments like energy drinks and hydration

Adds, entry of Reliance Consumer's 'Campa Cola' brand indicates no "disruptive" impact to VARB

Average rating of 22 analysts on VARB is "buy"; median PT is 615 rupees - data compiled by LSEG