2:5 Stock Split, Record Date Sept 13: FMCG Stock Slips 5.29% After Approving Split, Buy For TP Rs 1800

Large cap FMCG company Varun Beverages Ltd shares witnessed decline of 5.29% after the Board of Directors approved stock split in the ratio of 2:5 on July 30, 2024. Varun Beverages shares were priced at Rs 1576.45 apiece on July 30, 2024 and today the stock price is Rs 1493.05 per share, implying a decline of 5.29%. Varun Beverages shares offered return of 173% in last 2-years and slipped 5.68% in last 2-weeks.

The company also recommended an interim dividend of Rs 1.25 per share and set August 9, 2024 as the record date. Its market capitalisation stood at Rs 1,94,014.15 crore. Check key details below:

Varun Beverages Shares To Go Ex-Split: As per the regulatory filing of Varun Beverages dated September 2, 2024, "fixed Thursday, September 12, 2024 as the "Record Date" for determining entitlement of Equity Shareholders for the purpose of sub-division / split of existing Equity Shares of the Company, such that each Equity Share having face value of Rs. 5/- (Rupees Five only) each fully paid-up, be subdivided/split into such number of Equity Shares having face value of Rs. 2/- (Rupees Two only) each fully paid-up."

Varun Beverages Dividend: the Board of Director's approved an interim dividend @ 25% of face value i.e. Rs. 1.25 per share. Total cash outflow would be ~Rs. 1,624.30 million on July 30.

Varun Beverages Shares Performance & Return: The 52-week high price of Varun Beverages shares on BSE is Rs 1707.10 per share (as on 29/07/2024) and 52-week low price is Rs 828.20 per share (as on 26/10/2023), respectively. Varun Beverages has a market capitalisation of Rs 73,302.14 crore. Varun Beverages shares rose 20.21% year-to-date, surged 61% in last 1-year, and rallied 376% in last 3-years. Varun Beverages shares rose 962% in last 5-years.

Shareholding Pattern: FII/FPI have decreased holdings from 25.79% to 25.32% in Jun 2024 qtr. Number of FII/FPI investors increased from 1112 to 1158 in Jun 2024 qtr. Mutual Funds have increased holdings from 2.26% to 2.42% in Jun 2024 qtr. Number of MF schemes increased from 31 to 33 in Jun 2024 qtr. Institutional Investors have decreased holdings from 29.95% to 29.86% in Jun 2024 qtr. Government pension fund global has 2.36% stake in Varun Beverages.

Varun Beverages Shares Get Buy Call: Brokerage firm Axis Securities recommended buy call to Varun Beverages shares with target price of Rs 1800 per share.

Varun Beverages Financials: It declared revenue from operations soared 28.3% Year-On-Year (YoY) to Rs 7196.86 crore in Q2 as against Rs 5,611.40 crore announced in the corresponding quarter of last year. Ravi Jaipuria, Chairman, Varun Beverages Limited said, "We are pleased to report robust performance for the second quarter of CY2024, achieving a consolidated sales volume growth of 28.1%, which includes volumes from BevCo. The impressive volume growth of 22.9% in India primarily contributed to this outstanding performance, supported by our expanded capacities, enhanced distribution network, and a strong summer season. Meanwhile, our international markets remained relatively flat, moreover it was a seasonally weak quarter for African market."

According to the BSE filing, "Consolidated sales volume grew by 28.1% to 40.16 crore cases in Q2 CY2024 from 31.35 crore cases in Q2 CY2023. This includes ~28 million cases from BevCo during the quarter. India volumes grew by 22.9% while International volumes (before BevCo volumes) was almost flat primarily on account of volumes in Zimbabwe getting affected due to portfolio transition to zero sugar without affecting profits."

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.

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