Varun Beverages shares surge most in over 11 months in highly volatile session; here is why

Shares of Varun Beverages, the official bottler of PepsiCo in India, posted their best day in over 11 months on Monday, March 11 in an otherwise highly volatile session. Varun Beverages climbed as much as 3.76%, its biggest single day gain since April 8, 2025, to hit an intraday high of ₹416.40 on the National Stock Exchange (NSE). On the BSE, Varun Beverages shares rose as much as 3.75%.

The stock came under buying interest after global investment bank BoFA Securities said that the company has good earnings potential and the stock's valuation is below its peers and risk-reward seems favourable.

Company is strengthening its portfolio to effectively meet peak India summer demand and navigate competitive intensity. Its overseas business is steady and long-term gains on new forays like snacks and beer is possible, BoFA Securities added.

The company last week said that it will acquire 23% stake in Jager Renewables Two Private Limited (a special purpose vehicle engaged to generate & supply solar power to consumers in the state of Rajasthan) to obtain solar power for captive consumption, for a consideration of ₹7.05 crore.

"Upon consummation of the above-mentioned transaction, Company shall hold 49% of Equity Share Capital of Jager Renewables Two Private Limited," the company said.

Varun Beverages in December last year said that it will completely acquire South Africa-based firm Twizza through its local subsidiary, The Beverages Company Proprietary Limited (Bevco).

Twizza is engaged in the business of manufacturing and distributing its own branded non-alcoholic beverages. It operates through three manufacturing facilities in Cape Town, Queenstown, and Middelburg and has a combined annual production capacity of 100 million cases.

As of 12:34 pm, Varun Beverages shares traded 1% higher at ₹405, outperforming the NIFTY50 index which was down 0.06%.