Rs 1.25/Share Dividend: FMCG Stock To Hit Ex-Date This Week; Buy In FY25?

Bluechip FMCG company Varun Beverages Ltd. has a market valuation of Rs. 1,82,669 Cr. One of the largest franchisees of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) outside of the United States is Varun Beverages Ltd. A major force in the beverage sector, Varun Beverages Limited (VBL) is one of the largest franchisees of PepsiCo worldwide. This week, the stock will be closely watched as it will trade ex-dividend on April 4, 2024, with a distribution of Rs 1.25. Today's shares opened at a higher price of Rs 1401.55 per share. On February 26, 2024, the stock hit a 52-week high of Rs 1,560.30, and on March 31, 2023, it hit a 52-week low of Rs 681.53.

Varun Beverages Dividend

"In continuation to our intimation dated February 5, 2024 regarding the recommendation of payment of Final Dividend to the Equity Shareholders of the Company, the Board of Directors vide Circular Resolution passed today (at 2:52 P.M.) fixed Thursday, April 4, 2024 as the Record Date, for the purpose of ascertaining the eligibility of Equity Shareholders entitled for receipt of Final Dividend of Rs.1.25/- per Equity Share of face value of Rs. 5/- each for the Financial Year ended December 31, 2023. The Final Dividend, if approved by the Equity Shareholders at 29th Annual General Meeting scheduled on Wednesday, April 3, 2024, will be paid on and from Friday, April 5, 2024 to those shareholders whose name appears in the Register of Members of the Company or in the list of beneficial owners maintained by the Depositories as on Thursday, April 4, 2024," said Varun Beverages in a regulatory filing on March 20, 2024.

Varun Beverages News

"After receipt of requisite approvals (including but not limited to PepsiCo Inc. and Competition Commission South Africa), our Company has completed the acquisition of the Company, The Beverage Company Proprietary Limited, South Africa along-with its wholly-owned subsidiaries (hereinafter referred as "Bevco"). Accordingly, Bevco has become subsidiary of our Company with effect from March 26, 2024," said Varun Beverages in a stock exchange filing on 27th March 2024.

Varun Beverages Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said the current market price (CMP) of VBL stands at 1398.60. Notably, the stock is in a consolidation phase, ranging between 1360 and 1455. This consolidation pattern suggests an impending breakout in either direction.

A key observation is the robust support the stock has found at its 50-day Exponential Moving Average (EMA) which is at 1360 levels. However, should this support be breached, a downward movement towards the 100-day EMA support at 1270 is likely.

For investors eyeing entry points, purchasing during this consolidation phase, particularly near the 50-day EMA support level, presents an opportunity. A stop loss (SL) set at 1270 is advisable to mitigate potential losses, while targets lie in the range of 1500-1550.

Adopting a strategy of buying during dips could prove beneficial for maximizing returns in VBL. As such, investors are advised to monitor price movements closely for optimal entry and exit points.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.