Emkay Global Recommends Buy on Varun Beverages; Target Rs 615

• Emkay Global Financial advises buying Varun Beverages (VBL) with a revised target price of Rs 615.
• VBL acquired a 100% stake in Twizza (Pty), a NARTD beverage manufacturer in South Africa.
• The acquisition is projected to increase VBL's South Africa market share to approximately 20% by CY27E from ~10%.
• Twizza's backward integration and cluster-based cost synergies are expected to enhance profitability for VBL's existing operations.
• The Rs 11.2bn acquisition valuation is attractive, offering a 5x-6x value creation opportunity.

Why It Matters: Emkay Global recommends buying VBL, citing the strategic Twizza acquisition and strong growth prospects.