Key Points Of Varun Beverages:-
- Varun Beverages is a significant player in the beverage industry and the second-largest franchisee of PepsiCo brands, including carbonated soft drinks (CSDs) and non-carbonated drinks.
- The company’s stock is set to go ex-dividend tomorrow, as shareholders become eligible to receive the final dividend of Re. 1/- per equity share of face value of Rs. 10/- each for the financial year ended December 31, 2022.
- The Board of Directors of Varun Beverages announced this in a stock exchange filing and has fixed April 12, 2023, as the record date to determine which equity shareholders are eligible to receive the final dividend.
- According to the Board of Directors, the final dividend will be paid on and from April 13, 2023, to shareholders whose name appears in the Register of Members of the Company or in the list of beneficial owners maintained by the Depositories as of April 12, 2023.
- Varun Beverages has declared a dividend of 35% per equity share with a face value of ₹10 for the fiscal year that ended in December 2022.
- This translates to a dividend of ₹3.5 per share, with a dividend yield of 0.24% based on the current share price of ₹1,434.90.
- The company has a good track record of dividend declarations over the past five years, with seven dividends declared since August 16, 2017.
- The stock generated a dividend yield of 0.17% over the last 12 months, based on the current share price of ₹1,438.25.
- Varun Beverages’ stock closed at ₹1,434.90 apiece on the NSE today, a 1.50% increase from the previous close of ₹1,413.70.
- The stock has delivered a multibagger return of 118.76% in the last year and has gained 7.64% YTD in 2023.
- The stock touched a 52-week high of ₹1,474.00 on April 5, 2023, and a 52-week low of ₹630.07 on April 12, 2022.
- Rahul Ghose, Founder & CEO of Hedged, an algorithm-powered advisory platform, commented on the technical stock outlook, stating that the Varun Beverages stock has been making higher highs and higher lows, indicating a strong uptrend.
- The stock is also trading above its short-term moving averages of 8, 13, and 20 EMA, which is considered a bullish sign.
- Ghose recommends holding the stock with a stop loss of 1275 in the medium term and looking out for bearish candlestick formations near the upper band only as a sign of any near-term correction.
- Kaustubh Pawaskar, DVP Fundamental Research at Sharekhan by BNP Paribas, commented on the fundamental outlook, stating that the company is expected to post strong double-digit revenue and earnings growth due to a mix of volume growth and realization growth, driven by an improved mix in the current season.
- The company aims to achieve mid-to-high teens growth, with double-digit volume growth, and consistent improvement in the return profile.
- The stock is currently available at an attractive valuation of 49x/39x its CY2023/CY2024E earnings.
- Pawaskar has a positive view on the stock with a price target of ₹1630.
Details Of Varun Beverages:-
Varun Beverages is a large-cap company in the FMCG industry, with a market valuation of ₹93,422 Cr. They are a significant player in the beverage industry and the second-largest franchisee of PepsiCo brands, including carbonated soft drinks (CSDs) and non-carbonated drinks.
The company’s stock is set to go ex-dividend tomorrow, as shareholders become eligible to receive the final dividend of Re. 1/- per equity share of face value of Rs. 10/- each for the financial year ended December 31, 2022. The Board of Directors of Varun Beverages announced this in a stock exchange filing and has fixed April 12, 2023, as the record date to determine which equity shareholders are eligible to receive the final dividend.
According to the Board of Directors, the final dividend will be paid on and from April 13, 2023, to shareholders whose name appears in the Register of Members of the Company or in the list of beneficial owners maintained by the Depositories as of April 12, 2023.
Varun Beverages, a large-cap company in the FMCG industry, has declared a dividend of 35% per equity share with a face value of ₹10 for the fiscal year that ended in December 2022. This translates to a dividend of ₹3.5 per share, with a dividend yield of 0.24% based on the current share price of ₹1,434.90. The company has a good track record of dividend declarations over the past five years, with seven dividends declared since August 16, 2017. The stock generated a dividend yield of 0.17% over the last 12 months, based on the current share price of ₹1,438.25.
Varun Beverages’ stock closed at ₹1,434.90 apiece on the NSE today, a 1.50% increase from the previous close of ₹1,413.70. The stock has delivered a multi bagger return of 118.76% in the last year and has gained 7.64% YTD in 2023. The stock touched a 52-week high of ₹1,474.00 on April 5, 2023, and a 52-week low of ₹630.07 on April 12, 2022.
Rahul Ghose, Founder & CEO of Hedged, an algorithm-powered advisory platform, commented on the technical stock outlook, stating that the Varun Beverages stock has been making higher highs and higher lows, indicating a strong uptrend. The stock is also trading above its short-term moving averages of 8, 13, and 20 EMA, which is considered a bullish sign. The last supply zone that was formed did not sustain, and prices went through it. Ghose recommends holding the stock with a stop loss of 1275 in the medium term and looking out for bearish candlestick formations near the upper band only as a sign of any near-term correction.
Kaustubh Pawaskar, DVP Fundamental Research at Sharekhan by BNP Paribas, commented on the fundamental outlook, stating that the company is expected to post strong double-digit revenue and earnings growth due to a mix of volume growth and realization growth, driven by an improved mix in the current season. The company aims to achieve mid-to-high teens growth, with double-digit volume growth, and consistent improvement in the return profile. The stock is currently available at an attractive valuation of 49x/39x its CY2023/CY2024E earnings. Pawaskar has a positive view on the stock with a price target of ₹1630.
About Varun Beverages:-
With a market valuation of ₹93,422 Cr, Varun Beverages is a large cap company with operations in the FMCG industry.
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