1 Yr Return 120%: FMCG Major Declares Dividend, Motilal Oswal Says Buy For Gain

Board of directors of large cap FMCG sector stock, Varun Beverages Ltd declared final dividend for the FY 2022 and fixed April 13, 2023 as the record date. The stock rallied 120% in just 1-year and 33% in last 6-months. Meanwhile, Motilal Oswal has suggested investors to buy Varun Beverages with target price of Rs 1620 apiece. If you buy Varun Beverages Share now, you can get likely return of 18%. Check
details below:

Varun Beverages Sets Record Date For Final Dividend: According to the BSE filing of the company, "The Board of Directors fixed Wednesday, April 12, 2023 as the Record Date, for the purpose of ascertaining the eligibility of Equity Shareholders entitled for receipt of Final Dividend of Re. 1/- per Equity Share of face value of Rs. 10/- each for the Financial Year ended December 31, 2022 as approved by the Equity Shareholders of the Company at their Annual General Meeting held on March 27, 2023. The Final Dividend will be paid on and from Thursday, April 13, 2023."

Varun Beverages Stock Performance & Return: Current market price of Varun Beverages is Rs 1374.25 apiece with intraday gain of 1.53% on BSE. Its 52-week high is Rs 1432.05 apiece and 52-week low is Rs 619.04 apiece, respectively. The company's market capitalisation is Rs 89,265.51 crore.
In last 2-years, Varun Beverages gave return of 210%, 447% return in last 3-years, and 650% return in last 5-years.

Valuation: According to Motilal Oswal's report Dated March 10, 2023, "We expect a revenue/ EBITDA/PAT CAGR of 16%/18%/27% over CY22-24. We value the stock at 44x CY24E EPS to arrive at a TP of INR1,620. Maintain BUY." The Indian beverage industry is expected to witness significant growth opportunities going ahead on the back of favorable climatic conditions (hot, dry, or moderate), growth in per capita income, accelerated urbanization, an expanding demographic profile and a rising middle-class population.

About Varun Beverages: Varun Beverages Ltd, part of the RJ Corp group, is a diversified business conglomerate with interests in beverages, quick-service restaurants, dairy, and healthcare. It is the second largest franchisee in the world (outside US) of carbonated soft drinks ('CSDs') and non-carbonated beverages ('NCBs') sold under trademarks owned by PepsiCo. It has presence in 27 States and 7 Union Territories in India and 5 other countries across the world.

Disclaimer:The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.