Varun Beverages Ltd. recorded good 1QCY24 performance with 29% YoY revenue expansion, led by strong 30% volume growth (15.5% organic). Although margins were flat YoY at 22.7% on account of lower-margin South Africa consolidation, domestic demand was healthy with double-digit growth. Management is optimistic about long-term double-digit volume growth, driven by distribution growth (visi-coolers) and transition to healthier drinks (nimbooz +100% YoY). International markets, while margin-dilutive, have scale-up potential. We reiterate BUY (55x CY26E EPS), expecting 18%/16%/26% revenue/EBITDA/PAT CAGRs over CY25-26. As PepsiCo's flagship franchisee, VBL is well-positioned to benefit from India's underpenetrated beverage market and rural refrigeration growth.
JSW Infrastructure finished FY25 with robust growth in cargo volumes of 117 Mn tons (+9% YoY). Topline increased by 19% YoY to ₹44.8Bn, while APAT increased ~22% YoY, which indicates consistent advancement towards its goal of achieving port capacity of 400 MTPA by FY30. Led by the Navkar acquisition, the logistics segment aims at ₹80b revenue by FY30. With a resilient balance sheet and optimistic tone, the company is well-positioned to leverage India's infrastructure expansion and growing third-party cargo demand in the face of headwinds globally. We foresee JSWINFRA to consolidate its market leadership, resulting in 13% volume CAGR between FY25-27. Coupled with a dramatic increase in logistics revenues, we forecast revenue/EBITDA/APAT CAGR of 22%/23%/18% between FY25-27.
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