Varun Beverages Share Price: The share price of Varun Beverages, the largest franchisee of PepsiCo outside the United States, is expected to remain in focus on Wednesday (August 26), after the company announced its entry into the alcoholic beverages segment.
The stock of the BSE 100 company settled 2.6 per cent higher at Rs 438 in the previous session.
Additionally, the company appointed former Diageo executive Prathmesh Mishra as the chief executive officer and managing director of the subsidiary.
The company’s board, at its meeting held on Tuesday, approved the incorporation of “a wholly-owned subsidiary company in India, inter alia to carry on the business of ready-to-drink, alcoholic beverages and allied products, subject to receipt of applicable requisite approvals”.
Besides, the board also approved the incorporation of “a joint venture company in Tunisia, inter alia, to carry on the business of production and distribution of beverages including carbonated soft drinks, juices, water and dairy”.
Varun Beverages Share Price Target
Following the announcement, US-based investment bank Morgan Stanley maintained its positive outlook on Varun Beverages, retaining its ‘Overweight’ rating and setting a price target of Rs 557. This implies an upside of over 27 per cent from the stock’s current market price.
The brokerage noted that Prathmesh Mishra has been appointed managing director and chief executive officer of the subsidiary. Mishra has 30 years of industry experience, including at Diageo.
The board also approved a Tunisia joint venture, in which Varun Beverages will hold a 75 per cent stake. The venture will cover soft drinks, juices, water and dairy.
The announcement follows the company’s management commentary in October 2025 on the opportunity to expand into the RTD segment.
Varun Beverages Stock Performance
Varun Beverages has delivered mixed returns across different time periods. The stock has declined 0.28 per cent over the past week but gained 0.11 per cent over the past two weeks.
Over one month, it has fallen 4.22 per cent, while the three-month decline stands at 17.48 per cent. The stock is down 3.89 per cent over six months and 10.89 per cent year-to-date.
Over one year, it has declined 15.07 per cent. However, its longer-term performance remains strong, with gains of 25.09 per cent over three years and 295.52 per cent over five years.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
