Varun Beverages Gains 2.36%: Key Events and Market Signals from 9-13 Feb 2026

9 February 2026: Strong Intraday Surge Amid Sector Outperformance

Varun Beverages kicked off the week with a robust performance, surging 3.26% to close at ₹457.25, significantly outperforming the Sensex’s 1.04% gain. The stock reached an intraday high of ₹452.60, marking a 3.1% rise from the previous close. This rally was supported by strong buying interest, with volume reaching 340,431 shares, reflecting heightened investor enthusiasm.

Within the Breweries & Distilleries sector, which advanced 2.11% that day, Varun Beverages’ outperformance by over 1% underscored its relative strength. Despite this, the stock remained below all key moving averages, indicating that the rally was occurring within a broader corrective phase rather than signalling a definitive trend reversal.

Market conditions were broadly positive, with the Sensex trading approximately 2.55% below its 52-week high, supported by mega-cap stocks. However, Varun Beverages’ longer-term performance remained subdued, with one-month and three-month returns at -7.03% and -3.39% respectively, contrasting with the Sensex’s modest gains over the same periods.

10 February 2026: Rating Upgrade to Hold Reflects Mixed Fundamentals and Technicals

Following the strong price action on 9 February, MarketsMOJO upgraded Varun Beverages’ rating from ‘Sell’ to ‘Hold’ on 10 February 2026. This upgrade was driven by a nuanced reassessment of the company’s financial quality, valuation, and technical indicators amid mixed signals.

Fundamentally, Varun Beverages boasts strong long-term metrics, including an average Return on Equity (ROE) of 21.43%, annualised net sales growth of 27.44%, and operating profit growth of 41.61%. The company maintains a healthy debt servicing capacity with a Debt to EBITDA ratio of 0.94 times and enjoys significant institutional ownership at 33.87%.

However, recent quarterly results were flat, with Return on Capital Employed (ROCE) at 18.92% and a Debtors Turnover Ratio of 17.79 times, indicating some operational challenges. The stock’s valuation remains expensive, trading at a Price to Book Value (P/BV) of 7.9 and a PEG ratio of 3, suggesting growth expectations are priced in but not excessively stretched relative to peers.

Technically, the stock showed signs of stabilisation. While the MACD remained bearish weekly, it improved to mildly bearish monthly. The Relative Strength Index (RSI) was neutral, and daily moving averages turned mildly bullish, signalling potential short-term momentum. Other indicators such as Bollinger Bands and KST presented mixed signals, contributing to the cautious upgrade.

Varun Beverages commands a dominant market position with a market capitalisation of ₹1,54,494 crores, representing 41.42% of its sector’s market cap and generating ₹21,685.38 crores in annual sales. Despite recent volatility, this leadership underpins its competitive advantages in distribution and brand strength.

11–13 February 2026: Consolidation and Mild Downtrend Amid Market Weakness

Following the upgrade, Varun Beverages’ price action was mixed. On 11 February, the stock inched up 0.13% to ₹456.90 on low volume of 56,874 shares, while the Sensex gained 0.13%. The following two sessions saw declines: a 0.27% drop on 12 February to ₹455.65 and a sharper 1.38% fall on 13 February to ₹449.35, the week’s closing price.

Volume on 13 February surged to 349,962 shares, indicating increased selling pressure as the Sensex declined 1.40% that day. The stock’s weekly performance of +2.36% contrasts with the Sensex’s 0.54% loss, highlighting relative outperformance despite late-week weakness.

Technically, the stock remains below key moving averages, and the mixed signals from technical indicators suggest a cautious outlook. The recent price declines may reflect profit-taking or broader market risk aversion rather than fundamental deterioration.

Daily Price Performance vs Sensex

Key Takeaways

Positive Signals: Varun Beverages outperformed the Sensex by 2.90% over the week, closing with a 2.36% gain despite broader market weakness. The intraday surge on 9 February demonstrated strong buying interest and sector outperformance. The MarketsMOJO upgrade to ‘Hold’ reflects improving technical indicators and recognition of the company’s robust long-term fundamentals, including strong ROE, sales growth, and institutional backing.

Cautionary Signals: The stock remains below all key moving averages, indicating it is still in a corrective phase. Recent quarterly results were flat, and valuation metrics remain expensive with a P/BV of 7.9 and PEG ratio of 3. Technical indicators present mixed signals, with some bearish momentum persisting on weekly and monthly charts. The late-week price decline and increased volume suggest profit-taking or market risk aversion.

Conclusion

Varun Beverages Ltd’s performance this week was marked by resilience and relative strength against a weakening Sensex. The stock’s early-week rally and subsequent cautious upgrade by MarketsMOJO highlight a complex interplay of strong fundamentals and mixed technical signals. While the company’s dominant market position and long-term growth metrics provide a solid foundation, the current technical environment and valuation premium warrant a measured outlook. Investors should monitor the stock’s price action relative to key moving averages and sector trends to assess the sustainability of this recovery phase.

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