Varun Beverages share price cracks 7% to hit 1-year low after Q4 numbers. Should you buy, sell or hold?

Pepsi India bottler Varun Beverages saw its shares tumble 7% in intraday trade on Tuesday, February 11, hitting a 12-month low of ₹511.15 apiece after the company's operating expenses rose sharply during the December quarter. Despite strong volume growth during the reporting quarter, driven primarily by volume additions from South Africa and the Democratic Republic of Congo, the rise in raw material costs has impacted the company's bottom line numbers. Domestic brokerage firm Kotak Institutional Equities stated that the company remains focused on sustaining healthy growth in both Indian and international markets through deeper market penetration, strategic capacity expansion, and continued investments in technology and sustainability. Domestic brokerage firm Motilal Oswal expects Varun Beverages to sustain its earnings momentum, supported by increased penetration in newly acquired African territories, stable growth in the domestic market, continued expansion in capacity and distribution reach with a 10% annual addition in outlets, and rising refrigeration in rural and semi-rural areas.