Varun Beverages' stock correction overdone; growth prospects strong

Having slumped 33 per cent from its three-month highs, the stock of Varun Beverages has recouped half of those losses over the past fortnight. The drop in stock prices was due to concerns related to competition and slower volume growth in the India business. The stock is currently trading at Rs 507 a share.

 

However, the Street believes that the correction is overdone and that the company has multiple growth opportunities in India and the African market. Further, there could be a near-term volume surge given the onset of the summer season, which is the peak period for the Pepsi