India's Varun Beverages rise as PhillipCapital initiates with 'buy' rating; shares rise

** PepsiCo's domestic bottler Varun Beverages VARB.NS to benefit from market opportunities, product innovation, deep distribution moat, says PhillipCapital

** Brokerage initiates coverage with "Buy" rating; TP at 560 rupees

** Co's latest forays, including KIVA Spirits, the Asahi alliance in India, and Carlsberg tie-up in Africa, offer optionality yet to be priced in--PhillipCapital

** VARB's new consumption categories such as zero-sugar carbonated soft drinks, energy, sports and milk-based drinks help defend value base, attract health-conscious consumers and premiumise

** Competition threat exists, but in India’s under-penetrated soft drink market, believe mass-focused entrants are likely to expand the pie rather than take a significant share from incumbents--brokerage

** 22 out of 25 analysts rate stock "Buy" or higher; median PT at 556 rupees

** Shares of co up 1.7% at 432.55 rupees; YTD, shares down 11.6%