Varun Beverages share

Beverages and Bull Markets: Is Varun the New King of Cool?

Varun Beverages is on a roll! From stock splits to dividends, here's why you should sip this investment with extra fizz!

Varun Beverages has been making waves in the stock market lately, and today was no different. On July 31, 2024, the company's share price saw a slight increase of 0.08%, closing at ₹1576.45 per share. Investors are buzzing with excitement as Varun Beverages, renowned for being a franchise partner for the global giant PepsiCo, keeps delivering refreshing news for shareholders. The current valuation at 58 times earnings raises the question: Is this the right time to dip your toes into the fizzy waters of VBL stock?

Despite a soft second quarter, analysts have kept their spirits high, adjusting their earnings per share (EPS) targets down by only 5-6% for 2024-2026 due to external factors like weather trends and seasonal sales changes. The suggestion to ‘Buy’ from Nuvama highlights the belief that with the arrival of the strong monsoon season, Q3 may pleasantly surprise investors. With a solid revenue growth of 29% year-on-year, bringing in ₹7330 crore, the company managed to sell a whopping 402 million cases of beverages—a staggering growth of 28%. Talk about thirst-quenching performance!

In an exciting turn, Varun Beverages has also announced a 2:5 stock split, which is always a topic that gets investors chatting. But that’s not all! The company is adding to the fizz with an interim dividend of ₹1.25 per share. This move aims to showcase its commitment to rewarding shareholders while keeping the company’s stock accessible to more potential investors. With 103,788 shares changing hands by mid-morning, it’s clear that Varun Beverages knows how to attract attention!

So, what’s the verdict on Varun Beverages? It seems like a thrilling ride for shareholders as they savor the gains from dividends, stock splits, and potential future growth. As a fun fact, did you know that Varun Beverages is one of the largest bottling partners for PepsiCo in India? The company has a reputation for turning ordinary people into extraordinary investors just by popping open a refreshing beverage. Cheers to that! And remember, when it comes to stocks, a little bit of good timing can go a long way!