Varun Beverages Shares

Selective FMCG stocks may rise up to 11 per cent, even if broader market loses more ground

Stock has gained 1.3 times in the last one year crossing the Rs 1 trillion mark in m-cap

The strong recovery in demand post the pandemic and continued efforts towards expanding the distribution network across markets resulted in a 41% growth in consolidated sales volume in CY22.

Varun Beverages Ltd, PepsiCo's largest franchise bottler, on Monday reported a more than twofold jump in its consolidated net profit to Rs 81.52 crore for the quarter that ended December 31, 2022, led by volume growth and improved net realizations. The company, which follows the calendar year as its financial year, posted a net profit of Rs 32.59 crore during the October-December quarter a year ago. Its revenue from operations during the quarter under review stood at Rs 2,257.20 crore, up 27.89 per cent as against Rs 1,764.93 crore of the corresponding period last fiscal, Varun Beverages Ltd (VBL) said in a regulatory filing. VBL's "sales volumes grew by 17.8 per cent in Q4 CY2022 to 132.0 million cases," said the company in its earning statement. Its PAT increased 150 per cent in the October-December period, which is a "seasonally weak quarter". Its "net realization increased by 6 per cent to Rs 164 primarily due to price hike in select SKUs, rationalised discounts/incentives, an

Energy drink Sting help drive realisations of Pepsi bottler in Q3CY22

Going ahead, VBL expects double-digit volume growth to continue, led by 5-10 per cent annual outlet expansion and growth in revenue per outlet

GIDA will allot 45 acres to the company for the plant, which will generate about 1,500 jobs

The Nifty FMCG index hit a fresh all-time high on Thursday even as the key benchmark indices wilted under selling pressure, tracking losses in global markets.

Varun Beverage is the second largest bottling company of PepsiCo's beverages in the world outside the US

One year forward valuations at 40 times earnings are at a substantial discount to FMCG peers

Its total income during the quarter under review stood at Rs 2,275.60 crore, up 31.96 per cent from the same period a year ago

Volume recovery, expansion in new geographies and debt reduction are key positives

Despite the ongoing slowdown, the company has posted strong organic growth in the past couple of quarters

The company said the QIP issue opened on September 3, 2019 and closed on September 6, 2019

The stock was trading 5% higher to Rs 828 in morning deals. It was close to its record high level of Rs 849 touched on September 21, 2018 on the BSE in intra-day trade.