Varun Beverages Limited is engaged in the business of manufacturing, bottling, and distribution of beverages under the ‘Pepsi brand. Except for the sales within India, it sells its products in certain pre-defined territories such as Nepal, Morocco, etc.
The company’s shares are currently trading at Rs 827.45, gaining around 2.50 percent as compared to the previous closing levels of Rs 807.50. It has a market capitalization of Rs 53,763 crores including the same in the ‘Large-cap’ category.
Keeping a purview of one year, the company’s stock has been successful in delivering multibagger returns of 110 percent to its stakeholders. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 2.10 Lakhs within a period of one year.
The Varun Beverages Limited has been registered a growth in their net profits from Rs 467 crores during 2019 to Rs 1,550 crores in 2022 indicating a compounded annual growth rate (CAGR) of around 50 percent.
One of the most recent developments in the company includes a stock split with the record date being the 15th of June 2023. The split took place in the ratio of 1:2 which means that one equity share of Rs 10 each has been split into two equity shares of Rs 5 each.
The consolidated financial results, following the calendar year, showcase an operating revenue of Rs 13,173 crores during 2022 as compared to the revenues of Rs 8,823 crores in the previous financial year. Moreover, the net profit numbers went up from Rs 746 crores in 2021 to Rs 1,550 crores in 2022.
Likewise, the profitability ratios such as the return on equity (ROE) and the return on capital employed (ROCE) increased with the former moving from 17.01 percent in 2021 to 29.34 percent in 2022 and the latter, keeping the timeframe the same, moved from 18.15 percent to 28.88 percent.
The latest shareholding pattern data exhibits the Promoters holding a 63.9 percent stake, and the Foreign Institutional Investors (FIIs) holding a 26 percent stake in the company.
Written by Amit Madnani
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