1:2 Split, Rs 2.50 Dividend: FMCG Giant Declares 24.9% Growth In Net, Morgan Gives Buy

Leading company from the FMCG sector Varun Beverages today announced a surge of 24.9% in its consolidated net profit to Rs 547.9 crore for the March quarter as against the corresponding quarter of last fiscal. The company announced a rally of 11.2% in its revenue to Rs 4,397.9 crore, as per its BSE filing. The company follows the January to December financial year. Current market price of Varun Beverages share on BSE is Rs 1432.80 per share with intraday decline of 2.08%. Varun Beverages Ltd shares declined despite reporting surge in net profit. Varun Beverages shares zoomed 90% in last 1-year. Government of Singapore has 1.26% stake in Varun Beverages. More details below:

Varun Beverages Q1 Results: The EBITDA of Varun Beverages zoomed 23.9% to Rs 988.7 crore year-on-year (YoY) as EBITDA margin bettered by 240 bps to 22.9% for Q1 CY2024 on increased gross margins and higher realizations. The growth has come despite surge in fixed costs linked with acquisition of new territories and commissioning of latest greenfield plants for the season. Net realization per case zoomed 3.5% in Q1 CY2024 to Rs. 179.7 amid improving product mix in India and higher contribution of global markets which have increased realization per case, as per the company's press statement.

Varun Beverages Issues Acquisition Update: As per the BSE filing of the company dated May 13, "Further, in continuation to our intimation dated October 16, 2023, our Company has today acquired/subscribed 9.80% (5.25% on fully diluted basis) of Equity Share Capital of Isharays Energy Two Private Limited (a special purpose vehicle inter-alia engaged to supply solar power to consumers in the state of Uttar Pradesh) for a total consideration of Rs. 1,92,00,000/-." It informed about incorporating the wholly-owned subsidiary company, Varun Foods (Zimbabwe) Pvt. Ltd, in Zimbabwe.

Morgan Stanley Recommends Buy Call: Global brokerage firm Morgan Stanley has recommended buy on Varun Beverages (VBL). The analyst has issued overweight rating on the renowned bottler of beverage major PepsiCo. The brokerage has given a target price of Rs 1,701 per share. The brokerage anticipated Varun Beverages may deliver India business' revenue growth averaging 19% annually with EBITDA margins steady at an average of 23.7%.

Varun Beverages Dividend History: Varun Beverages announced 9 dividends since August 16, 2017. In last 1-year, Varun Beverages announced an equity dividend amounting to Rs 2.50 per share. At the current share price of Rs 1434.2500, Varun Beverages offers a dividend yield is 0.17%.

Varun Beverages Stock Split History: Varun Beverages split the face value once since June 15, 2023. Varun Beverages last split the face value of its shares from Rs 10 to Rs 5 in 2023.The share quoted ex-split from June 15, 2023.

Varun Beverages Bonus Share History: Varun Beverages offered 3 bonus shares since July 25, 2019. The last Bonus that Varun Beverages declared was in the ratio 1:2 with ex-bonus date fixed as June 6, 2022.

Varun Beverages Stock Performance & Return: The 52-week high price of Varun Beverages shares on BSE is Rs 1560.30 apiece (as on 26/02/2024) and 52-week low price is Rs 754.35 apiece (as on 26/06/2023), respectively. Its market capitalisation is Rs 1,91,545.10 crore. Varun Beverages shares soared 302% in last 2-years, zoomed 576% in last 3-years, and soared 1006% in last 3-years.

Varun Beverages About: Varun Beverages Limited ("VBL" or the "Company") is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The Company manufactures, distributes and sells a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo, according to its LinkedIn page.

Disclaimer:

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