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The stock has gained 20 percent in the last one month following a recovery in market recovery. It was quoting at Rs 625.05, up 0.83 percent, on the BSE at 1230 hours.While retaining the “buy” call on the franchise of PepsiCo with a price target at Rs 760 from Rs 860, JM Financial said Varun posted resilient numbers amid disruption led by COVID 19.”Varun Beverages’ Q1CY20 result was better than our expectations driven by higher volume contribution from acquired territories and resilient performance from International geographies. Organic domestic volume performance (declined 13.7 percent) was a bit disappointing, though, as COVID 19 related lockdown had an adverse impact in the month of March (accounts for disproportionately higher volume share),” it said.The company maintained its operating margin on benign raw material costs and an easy base for the International business (last year Q1 margin was impacted by translation provisions).The carbonated soft drinks and non carbonated beverages maker reported awhopping 50 percent year on year growthin Q1 CY20 consolidated profit at Rs 60.06 crore, supported by tax writeback.

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