Expanding global presence with acquisition in South Africa

Company
20 Dec 2023
5 Min read 
  • Varun Beverages has acquired 100% equity stake in The Beverage Company (BevCo) in South Africa.
  •  The acquisition is valued at an attractive valuation of EV/sales of ~0.8x/0.7x on FY23/FY24E.
  •  BevCo had revenue of ~INR16b in FY23 with estimated EBITDA of INR1.9b.
  •  BevCo is a key player in the African market with a diversified portfolio.
  •  The acquisition will expand Varun Beverages' presence in the African market.
  •  Varun Beverages' stock is valued at 55x CY25E EPS with a target price of INR1,285.
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