Indian Multinational company Varun Beverages Ltd (VBL) is crashed on 30th July because of their quarterly results even after showing decent result .Varun beverages limited Crash update after Q2 Results article explain about key points from results and management commentary.
Varun beverages limited Crash update after Q2 Results:
VBL result:
As expectation of result is not met , company crashed around 7%.Company reported a 25.5 percent increase in profit after tax (PAT), reaching ₹1,261.83 crore for the June quarter, up from ₹1,005.42 crore in the same quarter last year. This profit growth was driven by volume increases and improved margins.
Why VBL stock crash 7% today
Companies’ sales are expected around 7344cr but the actual sales are 7197cr. Net profit is expectations around 1276cr but the actual net profit is 1262cr. There is the improvement in the margin but sales of the company were below the expectations. This is the main reason for Varun beverages limited Crash update after Q2 Results.
As per Ravi Jaipuria, Chairman of Varun Beverages, “With strong performance in a key quarter, we are on track to deliver healthy double-digit growth this calendar year. India remains a high-demand market with massive growth potential, driven by a growing consuming class and a young population. To capitalize on this demand, we are focused on further strengthening our infrastructure, distribution network, and product portfolio. With a focus on strategic growth and leveraging new opportunities in both India and international markets, we are confident in our ability to deliver sustainable value to all stakeholders”.
VBL split news:
Varun Beverages in its board meeting on 30 July 2024 has announced a 2:5 stock split ratio.
As per company filing “Sub-division/ split of the existing Equity Shares of the Company, such that each Equity Share having face value of Rs. 5/- (Rupees Five only) each fully paid-up, be sub-divided/split into such number of Equity Shares having face value of Rs. 2/-, subject to the approval of Equity Shareholders of the Company through Postal Ballot”.
VBL dividend:
Interim Dividend of Rs 1.25 per share.
Company history:
VBL has been associated with PepsiCo since the 1990s and is a key player in beverage industry and one of the largest franchisees of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks and packaged water sold under trademarks owned by PepsiCo.
PepsiCo brands produced and sold by the company it includes
- Pepsi
- Pepsi black
- sting
- Seven-Up Nimbooz Masala Soda and Evervess
- Seven-up
- Mirinda Orange
- Mountain Dew
- Slice
- Aquafina
- Tropicana Juices and many more.
In foods:
- Lays
- Daritos
- Cheetos
- Kurkure
Key points of the company:
During the summer seasons the demand for cold drinks will be increased.
- Company has started commercial production of corbonated soft drinks, juices and beverages base syrup.
- India’s ester industries have gains investment from VBL.
- VBL rises after snacks foray in Zambia, Zimbabwe. Stock has become the top gainer on consumer goods index.
- Vbl is the part of India’s RJ Corp Varun Beverages, which is the largest franchisee for Pizza Hut, KFC, Cream Bell, and Costa Coffee in India. which has been a franchisee for PepsiCo’s soft drinks brands such as Mountain Dew, Miranda and 7-Up since the 1990s, said each site will have the capacity to produce about 5,000 metric tonnes of snacks annually for the respective markets in Zimbabwe and Zambia.
- VBL has also been granted the franchise for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe.
VBL share Price and fundamentals:
Company financials
| Market cap | 2.19LCr
|
| P/E ratio | 101.34
|
| 52 weeks high | 1,702.80
|
| 52 weeks low | 795.50
|
| Current market price | 1591Rs |
| 1-year returns | 109.72% |
| 5-years returns | 1123.44% |
Read more to identify fundamentals of stock whether its good or not.
Conclusion
VBL is continuously increasing its distribution network. Its retail reach is 3 million outlets and it is looking to increase it by 10-12% every year. Some underpenetrated territories are growing extremely fast.
Bihar and MP territories are growing at 50%. This stock is not for Buy and Sell recommendations do your own research before investing. Consult your financial advisor and we are not SEBI registered.
FAQ
- Is Varun Beverages a Multibagger?
Shares of PepsiCo bottler Varun Beverages have delivered 522% returns in three years. The FMCG stock, which closed at Rs 257 on July 9, 2021 rose to Rs 1608 in early deals on Thursday. In comparison, the benchmark Sensex has gained 52% during the period.
2. Is Varun Beverages owned by Pepsi?
Varun Beverages Limited (VBL) is a key player in beverage industry and one of the largest franchisees of PepsiCo in the world (outside US).
3. Who is the owner of VBL?
VBL’s Promoter and Chairman Mr. Ravi Jaipuria has an established reputation as an entrepreneur and business leader and is the only Indian to receive PepsiCo’s International Bottler of the Year award, which was awarded in 1997