Varun Beverages Share Performance Overview
As of September 30, 2023, at 1:00 PM, the shares of Varun Beverages are trading at ₹608.35, reflecting a slight decrease of -0.15% from the previous closing price. The broader market is also experiencing downward pressure, with the Sensex reported at ₹84,595.12, showing a decline of -1.14%. Throughout the trading session, Varun Beverages reached a peak of ₹624.5 and dipped to a low of ₹602.3.
Technical Analysis
From a technical perspective, Varun Beverages is positioned above the 300-day Simple Moving Average (SMA) yet rests below the shorter-term SMAs (5, 10, 20, 50, and 100 days). This trend indicates potential support at the 300-day SMA while facing resistance levels at the 5, 10, 20, 50, and 100 days SMAs, which are critical for assessing future price movements.
Key Support and Resistance Levels
| Support Levels | Resistance Levels |
|---|---|
| ₹600.47 | ₹620.37 |
| ₹593.28 | ₹633.08 |
| ₹580.57 | ₹640.27 |
Trading Volume Insights
As of 1 PM today, the trading volume for Varun Beverages on the NSE and BSE has surged to 273.53% higher compared to the previous trading session. This significant increase in volume, alongside price movements, serves as a key indicator of market trends. An uptick in price accompanied by high volume can suggest a sustainable rally, while a price drop with increasing volume may point towards a potential decline.
Market Sentiment
Analyzing the current market sentiment, the stock exhibits a continuing downtrend, implying a bearish bias. Investors should watch for confirmation of this trend as further price movements develop in the coming sessions.
Fundamental Analysis
From a fundamental standpoint, Varun Beverages showcases a Return on Equity (ROE) of 34.15%. The stock currently holds a Price-to-Earnings (P/E) ratio of 81.68, while its Price-to-Book (P/B) ratio stands at 23.05, indicating relative valuations in the market.
Future Projections
According to forecasts, the median 1-year upside potential for Varun Beverages is estimated at 9.76%, with a target price projected at ₹667.73. This potential for growth can appeal to long-term investors seeking value in their investment portfolio.
Ownership Distribution
The promoter holding in Varun Beverages is currently at 62.66%, with mutual funds holding 1.62% and foreign institutional investors (FIIs) at 25.32%. Interestingly, mutual fund ownership has seen an increase from 1.52% in March to 1.62% in June, whereas FII holdings have decreased from 25.78% to 25.32% during the same period.
Peer Comparison
In contrast to Varun Beverages, its peers are exhibiting mixed results in today’s session. While some competitors are experiencing price declines, others are witnessing upward movement, making it crucial for investors to analyze overall market conditions. Additionally, benchmark indices such as Nifty and Sensex have noted declines of -1.07% and -1.14%, respectively, reinforcing a cautious sentiment in the market.
