Varun Beverages Stock: Analysts Suggest Wait-And-Watch Approach, Eye Breakout Above ₹570 For Next Leg

Analysts say a breakout above ₹570 could trigger bullish momentum, while caution is advised below ₹510.

Varun Beverages (VBL) reported a robust Q4 FY25, with net profit soaring 35% year-on-year to ₹726 crore and revenue rising 29% to ₹5,567 crore, buoyed by a 30% surge in volumes. 

Despite this strong operational performance, the PepsiCo bottler’s shares fell nearly 3% intraday, before paring some losses later in the session.

Operating margins came in at 22.7%, slightly lower than before, reflecting inflationary input pressures. 

While fundamentals remain strong, analysts caution that the stock is currently consolidating near its all-time highs.

On Stocktwits, analysts advise investors to wait for a decisive close above resistance levels or a dip toward support zones before initiating fresh positions. 

SEBI-registered analyst Mayank Singh Chandel notes that VBL has breached a short-term downward trendline, signaling a potential end to its corrective phase. 

However, the stock remains rangebound between ₹510–515 (support) and ₹560–570 (resistance), with the 50-day EMA acting as a near-term equilibrium. 

He adds that the stock’s Relative Strength Index (RSI) at 47 indicates neutral momentum, and a lack of decisive directional bias. 

Mayank emphasises that a confirmed breakout above ₹570 with strong volume could validate bullish momentum, while a breach below ₹510 might trigger profit-booking.

Financial Sarthis echoed a similar view, saying a decisive close above ₹540 could attract fresh buying toward ₹560–₹570, with key support seen around ₹510.

Data on Stocktwits shows retail sentiment turned ‘bearish’ on the counter a week ago. 

VBL shares have fallen 18% year-to-date (YTD).

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