Varun Beverages' stock has dropped 20% from its all-time high in the past month, leaving investors uncertain about the future of the multi-bagger stock. After reaching an all-time high of Rs 1432 on December 12, 2022, shares of Varun Beverages fell to a lower price point of Rs 1135 on January 13, a loss of 20.74 percent, or Rs 297.

The course adjustment was made in response to recommendations by the World Health Organization (WHO) on December 13, 2022, to increase taxes on sugary drinks. The World Health Organization has stated that a 10% increase in the price of sugary drinks could lead to a 16% decrease in sales.

Carbonated beverages and other beverage consumption may be negatively affected by a rise in GST/cess. In a note, ICICI Securities emphasized that the taxation of carbonated soft drinks at 40% was already in place. The recent drop in Pepsi India bottler stock was caused by investors taking profits from all-time highs.

From its low on January 13, the stock price has risen slightly. Following yesterday's close at Rs 1224.70 on BSE, shares of Varun Beverages climbed to an intraday high of Rs 1237 today, a 1.06 percent increase from the previous close. The company's stock price has increased for five straight trading days. The stock price increased by 98.54% in a year but dropped by 6.88% in 2023. The company's valuation in the market increased to Rs 77,992 crore. On the BSE, the exchange of 0.27 million company shares resulted in a total turnover of Rs 3.31 crore.

Technically, Varun Beverages is neither oversold nor overbought, as indicated by the RSI reading of 44. The stock has been relatively stable, with a beta of 0.7 over the past year. Shares of Varun Beverages are currently trading higher than the 5, 100, and 200-day moving averages but lower than the 20 and 50-day averages.