Varun Beverages board to mull stock split on May 2 - The Economic Times

The board of PepsiCo's largest franchise bottler Varun Beverages (VBL) is scheduled to meet on 2 May 2023 to consider stock split and approve the fourth quarter earnings.

"We wish to inform you that a meeting of the board of directors of the company will be held on Tuesday, 2 May 2023, inter-alia, to consider and approve unaudited financial results of the company, both on a standalone and consolidated basis, for the quarter ended 31 March 2023," the company said in a BSE filing.

"Proposal for sub-division/split of existing equity shares of the company having a face value of Rs 10/- each, fully paid up, in such manner as may be determined by the board of directors subject to the approval of equity shareholders of the company and/or any other regulatory/statutory approvals (if any)," the company added.

In Thursday's trade, the stock was trading 0.6% lower at Rs 1,437 on BSE. On a year-to-date basis, the stock has risen nearly 8%, while it has surged 113% in the last one year. It has also delivered multibagger returns to investors as the stock has risen nearly 500% in the last three years, while over 600% in the last five years.

For the quarter ended December 31, 2022, Varun Beverages reported a 150% year-on-year (YoY) increase in its consolidated profit after tax at Rs 81.5 crore. The company had reported a net profit of Rs 32.5 crore in the same quarter of the previous fiscal year.
The company's revenue from operations grew by 27.7% YoY to Rs 2,214 crore in the December quarter of CY22. Meanwhile, the EBITDA increased by 48.1% to Rs 3,07.5 crore in Q4CY22 from Rs 207.6 crore in Q4CY21. Its sales volumes grew by 17.8% in the December quarter of the calendar year 2022 to 13.2 crore cases.

As per Trendlyne data, the average target price for the stock is Rs 1,483, which shows an upside of 3% from the current market prices. The consensus recommendation from 15 analysts for Varun Beverages is a Buy. Out of these analysts, 13 have strong buy and buy ratings, while two have hold ratings.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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