Varun Beverages Shares Rise After Crickley Dairy Acquisition; Stock Trades in Green, Brokerages Bullish

Shares of Varun Beverages Limited were trading higher in today's session after the company announced a strategic acquisition on Tuesday.The Varun Beverages share price today was trading around Rs. 412.05, up 1.40%, at around 10:50 AM. The stock opened at Rs. 410 per share on the NSE due to positive market sentiment.

Varun Beverages Crickley Dairy Acquisition Details

Varun Beverages (VBL) has announced the acquisition of a 100% stake in Crickley Dairy Proprietary Ltd, a South Africa-based company, for approximately Rs. 131.47crore (ZAR 238 million).

The acquisition is being carried out through its subsidiary BevCo (The Beverage Company Proprietary Ltd), which is already a key player in South Africa's beverage market.

The Seller of the deal is Clark Holdings Proprietary Ltd

Expansion into the Dairy and Juice Segment

The main reason behind this acquisition is that Varun Beverages wants to move beyond carbonated soft drinks and expand into value-added segments like dairy and juice beverages.

BevCo, which became a wholly owned subsidiary of VBL in 2024, is one of South Africa's leading beverage manufacturers and distributors. It holds PepsiCo franchise rights and produces a wide range of products including carbonated drinks, energy drinks, and still beverages.
With the addition of Crickley Dairy, Varun Beverages will be able to strengthen its Africa business expansion strategy.

Enter the dairy and juice drinks segment and tap into growing demand for value-added beverages

Brokerages Bullish on Varun Beverages Stock

Brokerages are optimistic about the Varun beverages share outlook, looking at the strong growth potential across domestic and international markets.

BofA Securities recently has reiterated a 'Buy' rating for the stock with a target price of Rs. 550, implying significant upside

Motilal Oswal (MOSL) also maintains a Buy rating, expecting around 20% upside citing that VBL has the potential to benefit from expansion in emerging markets and strong demand trends.

Axis Direct has given a Buy rating with a target price of Rs. 500, indicating about 10% upside

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