Pepsico bottler Varun Beverages share price jumped 6.89% to Rs 862.90 today after the stock turned ex-date for stock split. The stock with a face value of Rs 10 has been split into two shares of Rs 5 each. The stock has jumped over 110% in the last one year, and nearly 7% in the last one month. Meanwhile, in the March quarter, company’s net profit rose 69% on-year to Rs 429 crore and revenue for the quarter was up 38% on-year to Rs 3,893 crore.
“The Board of Directors fixed Thursday, June 15, 2023 as the “Record Date” for determining entitlement of Equity Shareholders for the purpose of sub-division/split of existing Equity Shares of the Company from l(One) Equity Share having face value of Rs 10/- (Rupees Ten only) each fully paid-up, into 2 (Two) Equity Shares having face value of Rs 5/- (Rupees Five only) each fully paid-up, as approved by the Equity Shareholders through Postal Ballot on June 2, 2023,” Varun Beverages said in a stock exchange filing.
Should you buy, sell or hold Varun Beverages stock?
Nuvama: Buy – Target Price: Rs 1,646 (Pre-stock split)
“Given again the strong growth seen in volumes and the outperformance versus estimates, we increase our CY23E/CY24E EBITDA and PAT by 2%-1% and 6%-5%, respectively. We value VBL at 45x CY24E PE (in-line with India F&B average),” analysts at Nuvama Research said in a post-results report last month. The brokerage set a target price of Rs 1,646 pre-stock split.
Varun Beverages is one of the largest franchisees of PepsiCo in the world. The company produces & distributes carbonated drinks, juices & packaged drinking water in six countries including India. Meanwhile, benchmark indices were trading lower today. The NSE Nifty 50 fell 17.85 points or 0.10% to 18,738.05 and BSE Sensex tumbled 110.87 points or 0.18% to 63,117.64.