---
title: "Buy Varun Beverages; target of Rs 550: Motilal Oswal"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/276197939.md"
description: "Motilal Oswal recommends buying Varun Beverages with a target price of Rs 550, citing a strong revenue CAGR of 20% over the past decade. The company's growth is attributed to effective management strategies, including product diversification and international expansion, which is expected to drive future growth. Projections indicate a CAGR of 13% in revenue and EBITDA, and 16% in PAT from CY25-27. The stock is valued at 45x CY27E EPS."
datetime: "2026-02-18T04:58:29.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/276197939.md)
  - [en](https://longbridge.com/en/news/276197939.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/276197939.md)
---

# Buy Varun Beverages; target of Rs 550: Motilal Oswal

**Motilal Oswal's research report on Varun Beverages**

Varun Beverages (VBL) has been one of the fastest-growing domestic FMCG companies, registering a revenue CAGR of 20% over the last 10 years. This growth is driven by an agile management team focused on expanding operations through product diversification, geographic expansion, and entry into newer segments. On this front, VBL’s international expansion is emerging as a gamechanger for the company’s next phase of growth. The international market offers scale and high-growth business vs modest growth in the domestic beverage market (due to increasing competition and seasonal headwinds).

**Outlook**

We expect a CAGR of 13%/13%/16% in revenue/EBITDA/PAT over CY25-27. We value the stock at 45x CY27E EPS to arrive at a TP of INR550. We reiterate our BUY rating on the stock.

**For all recommendations report, click here**

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Varun Beverages - 1802026 - moti

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