Varun Beverages, PepsiCo’s largest bottler in India, is on the radar of Antique Broking, which has reaffirmed its ‘buy’ rating with a target price of ₹710, indicating a 10% upside from its previous close. The brokerage cites VBL’s strategic moves into emerging categories like energy drinks and dairy products, alongside capacity and geographic expansions, as key drivers for sustained growth in both volumes and margins. Recent acquisitions in Africa have bolstered VBL’s growth story. The company acquired PepsiCo’s manufacturing and distribution rights in Tanzania, a market with an estimated 200 million cases annually and a 34% PepsiCo market share, for ₹1,750 crore. This acquisition, priced attractively at an FY24 EV/sales of 1.2x, offers immediate double-digit growth potential. In Ghana, VBL’s ₹190 crore acquisition of a smaller market with an 11% PepsiCo share provides an entry point into West Africa, promising future growth opportunities. These expansions are underpinned by a robust financial strategy. VBL recently raised ₹7,500 crore through a QIP at ₹565 per share, reducing its debt burden and turning the company net cash positive. This financial flexibility enables the firm to fund acquisitions, including an increased stake in Lunarmech Technologies and further international ventures.