Varun Beverages shares stuck in bear grip, analysts say this on recovery 

Shares of Varun Beverages have fallen 34% from their 52-week high. The stock touched a high of Rs 682.84 on July 29, 2024. The stock has turned weak in the short term. With a RSI of 35.3%, the stock is neither oversold nor overbought on charts. In six months, the stock has fallen 31%. 

The multibagger stock has clocked negative returns for period up to a year. On the other hand, the stock rose 184% in three years and gained 643% in five years. 

In the current session, Varun Beverages stock was trading on a flat note at Rs 455.80 on BSE. Market cap of the firm stood at Rs 1.52 lakh crore. A total of 1.74 lakh shares of the firm changed hands, amounting to a turnover of Rs 78.5 crore. 

Hardik Matalia, Derivative Analyst, Choice Broking said, "Varun Beverages is displaying a sideways to bearish structure, as evident from its pattern of forming lower highs and lower lows on the daily chart. A breach below the crucial Rs 425 support zone could trigger further downside and lead to extended selling pressure in the near term. The Relative Strength Index (RSI) stands at 35.23, reflecting bearish undertones and suggesting the stock is in a downward trajectory."

"Short-term traders are advised to avoid fresh long positions until a clear reversal is observed, ideally supported by price action and volume confirmation. Long-term investors may consider starting partial accumulation only on signs of reversal and can look to add more on further dips. For any meaningful trend reversal, the stock needs to decisively move above the Rs 550–Rs565 resistance range with sustained strengthm," added Matalia. 

Shitij Gandhi, Sr Research Analyst (Technicals), SMC Global Securities said, "The stock has been under significant selling pressure over the past few months, with a steady decline seen from Rs 660 level to the Rs 450 mark. Technically, the stock is trading well below its short and long-term moving averages, and forming a downward-sloping channel on the daily charts.  

On the downside, the stock has a key support zone at 440-430, while the major resistance lies in the Rs 475- Rs 490 range. As long as the price remains within this range, the bearish bias is likely to persist. However, a breakdown below the support zone could intensify selling pressure, potentially dragging the stock down toward the Rs 400 level."

Varun Beverages shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

The Pepsico bottler reported a 33.45% rise in net profit for the March 2025 quarter. Net profit climbed to Rs 731.30 crore in Q1 against Rs 131.9 crore in the March 2024 quarter. Revenue from operations in Q1 rose 29% to Rs 5680 crore against Rs 4397.98 crore in the corresponding period of the previous fiscal EBITDA rose 27.8% in Q1 to Rs 1263.96 crore from Rs 988.76 crore in the Q1 of previous fiscal. The board also cleared a interim dividend of Rs 0.50 per share.  

Varun Beverages is a beverage company. It operates franchisee of PepsiCo. The company produces and distributes a range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo.