2:5 Stock Split, 25% Dividend Per Share: FMCG Stock To Buy After Q3 Net Profit Zooms 22.4%

Large cap FMCG company Varun Beverages shares today witnessed sharp rally of 2.78% as the company reported healthy Q3 results during market hours. Last trading price of VBL shares on BSE is Rs 594.30 per share. Its market capitalisation is Rs 1,93,068.90 crore. The company on October 22 announced a surge of 22.4% in consolidated net profit at RS 628.82 crore for the September 2024 quarter as compared to Rs 514.06 crore announced in the corresponding quarter of last year, as per the BSE filing.

Varun Beverages Ltd shares fell 2.69% in last 1-week and jumped 60% in last 1-year. In last 2-years. Varun Beverages stock rallied 194%. Earlier this year, VBL recommended 25% dividend i.e. Rs 1.25/share with ex-dividend date fixed as August 9, 2024. VBL recommended 2:5 stock split with ex-split date fixed as September 12, 2024. Check details below:

Varun Beverages Declares Q3 Results: The revenue from operations for the September 2024 quarter stood at Rs 4932.1 crore, up 25.2% as against Rs 3937.8 crore reported in the similar quarter of last year. "Heavy rains throughout the quarter led to India volumes growing in mid-single digits i.e. 5.7% and international volumes grew by 7.9% organically, said VBL in its BSE filing.

Commenting on the performance for Q3 & 9M CY2024 Mr. Ravi Jaipuria, Chairman, Varun Beverages Limited said, "We are pleased to report another strong quarter, despite the challenges posed by excessive rainfall in India. We achieved consolidated revenue growth of 24.1%, including contributions from BevCo, driven by our expanded distribution network, increased product penetration, and favorable demand trends in key markets. Enhanced operating efficiencies led to an improvement of 117 bps in our EBITDA margins, resulting in a robust 30.5% growth in EBITDA, and a healthy 22.3% growth in PAT for the quarter."

Varun Beverages Shares Performance: The 52-week high price of Varun Beverages shares on BSE is Rs 682.84 per share (as on 29/07/2024) and 52-week low price is Rs 331.28 per share (as on 26/10/2023), respectively. Varun Beverages shares tanked 9% in last 1-month. Varun Beverages stock gained 436% in last 3-years and surged 953% in last 5-years.

Shareholding Pattern: FII/FPI have decreased holdings from 25.79% to 25.32% in Jun 2024 qtr. Number of FII/FPI investors increased from 1112 to 1158 in Jun 2024 qtr. Mutual Funds have increased holdings from 2.26% to 2.42% in Jun 2024 qtr. Number of MF schemes increased from 31 to 33 in Jun 2024 qtr. Institutional Investors have decreased holdings from 29.95% to 29.86% in Jun 2024 qtr. Government pension fund global has 2.36% stake in Varun Beverages.

VBL Dividend In 2024: The Board of Director's approved an interim dividend @ 25% of face value i.e. Rs. 1.25 per share. Total cash outflow would be ~Rs. 1,624.30 million on July 30.

Should You Buy VBL Shares? According to A R Ramachandran, Independent SEBI Research Analyst, "Varun Beverages is bearish on the Daily charts with strong resistance at 613. A Daily close above this resistance could lead to target of 681 in the near term. Strong support will be at 567."

Earlier, Brokerage firm Citi suggested buy rating with target price of Rs 800 per share. HSBC also recommended buy call with target price of Rs 780 per share.

Disclaimer: The stock has been picked from the brokerage report of AR Ramchandran, HSBC Securities and CITI. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.