1:2 Stock Split: FMCG Giant Sets Record Date For Dividend, Motilal Has Buy; TP Rs 1600

Leading brokerage firm Motilal Oswal has recommended investors to buy large cap FMCG stock Varun Beverages Ltd shares with target price of Rs 1600 per share. Last trading price of Varun Beverages shares on BSE is Rs 1405.85 per share with intraday gain of 0.67%. Varun Beverages share offered return of 55% in last 6-months and rallied 116% in last 1-year.

Today the company fixed the record date as April 4, 2024 for final dividend of Rs 1.25 per Equity share of the face value of Rs 5/- each for the financial year ended December 31, 2023. Check details below:

Varun Beverages Sets Record Date For Final Dividend: As per the regulatory filing of Varun Beverages dated March 20, 2024, "the Board of Directors vide Circular Resolution passed today (at 2:52 P.M.) fixed Thursday, April 4, 2024 as the Record Date, for the purpose of ascertaining the eligibility of Equity Shareholders entitled for receipt of Final Dividend of Rs.1.25/- per Equity Share of face value of Rs. 5/- each for the Financial Year ended December 31, 2023." The Final Dividend, if approved by the Equity Shareholders at 29th Annual General Meeting scheduled on Wednesday, April 3, 2024, will be paid on and from Friday, April 5, 2024, added the BSE filing of Varun Beverages.

Varun Beverages Shares Performance & Return: The 52-week high price of Varun Beverages shares on BSE is Rs 1560.30 per share and 52-week low price is Rs 651.45 per share, respectively. The company has a market capitalisation of Rs 1,82,674.81 crore. Varun Beverages shares gave return of 13% year-to-date, zoomed 345% in last 2-years, and offered return of 548% in last 3-years. In last 5-years, Varun Beverages stock gave stunning returns of 1055%.

Varun Beverages Final Dividend: As per the BSE filing of the company dated Feb 5, 2024, "Recommendation of final dividend of Rs. 1.25 (Rupee One and Twenty Five Paisa only) per Equity Share of the nominal value of Rs. 5/- each for the Financial Year ended December 31, 2023 to the shareholders of the Company on a Record Date to be fixed by the Board of Directors of the Company."

Varun Beverages Financials: The PepsiCo franchisee, on Monday announced a surge of 76% year-on-year (YoY) in it profit after tax at Rs 143.76 crore for the December quarter amid growth in revenue from operations and better profit margins. Revenue from operations soared 20.5% YoY to Rs 2,667.70 crore for the quarter under review from Rs 2,214.24 crore in the corresponding quarter of last year, pushed by volume growth in India and International markets, as per the BSE filing.

Motilal Oswal Recommends Buy Call: Motilal Oswal said, "Factoring the strong fundamentals and potential for future growth (expect 21%/22%/28% revenue/EBITDA/PAT CAGR over CY23-26), we retain our BUY rating for the stock. We value the stock at 57x Mar'26E EPS to arrive at a TP of INR 1,600."

Stock Split In June 2023: Earlier last year, Board of directors of Varun Beverages fixed June 15, 2023 as the record date for 1:2 sub-division of shares. As per the BSE filing of the company, "the Board of Directors fixed Thursday, June 15, 2023 as the 'Record Date' for determining entitlement of Equity Shareholders for the purpose of sub-division / split of existing Equity Shares of the Company from 1(One) Equity Share having face value of Rs. 10/- (Rupees Ten only) each fully paid-up, into 2 (Two) Equity Shares having face value of Rs. 5/- (Rupees Five only) each fully paid-up, as approved by the Equity Shareholders through Postal Ballot on June 2, 2023."

Varun Beverages About: Varun Beverages Limited ("VBL" or the "Company") is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The Company manufactures, distributes and sells a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo, according to its LinkedIn page.

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