Varun Beverages hits 52-week high as CLSA maintains 'Buy' post Q2 results

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 54.2 per cent to Rs 325.66 crore from Rs 211.24 crore reported in the corresponding quarter of the previous fiscal.

Shares of Varun Beverages rallied 11.4 per cent to Rs 701.85, also its 52-week high, on the BSE on Tuesday after foreign brokerage CLSA maintained 'Buy' rating on the stock post strong September quarter results in FY20 (Q2FY20). 

"Double digit growth appears commendable in the current context, with steady progress in recently acquired South and West Territory... Management appears confident in its near-term outlook," it noted in its review. The brokerage maintains 'buy' rating with a target price of Rs 860.

The soft-drink producer and one of the largest franchisee of PepsiCo worldwide posted a 83.7 per cent YoY rise in the