2:5 Stock Split For The 1st Time: September 12 Record Date; Buy & Book Your Eligibility?

A significant player in the beverage sector, Varun Beverages Limited (VBL) is one of PepsiCo's largest franchisees worldwide. The company produces, markets, and sells a broad variety of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including packaged drinking water marketed under PepsiCo-owned brands. Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda Orange, Seven-Up Nimbooz Masala Soda, and Evervess are among the PepsiCo CSD brands that VBL manufactures and distributes. Tropicana Slice, Tropicana Juices (100% and Delight), Seven-Up Nimbooz, Gatorade, and bottled drinking water under the Aquafina name are among the PepsiCo NCB products. In addition to the territories of Nepal, Sri Lanka, Morocco, Zambia, and Zimbabwe, VBL has franchisees for a variety of PepsiCo products in 27 States and 7 Union Territories in India.

Varun Beverages 1st Ever Stock Split

"This is to inform you that pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors fixed Thursday, September 12, 2024 as the "Record Date" for determining entitlement of Equity Shareholders for the purpose of sub-division / split of 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 subdivided/split into such number of Equity Shares having face value of Rs. 2/- (Rupees Two only) each fully paid-up, as approved by the Equity Shareholders through Postal Ballot on August 30, 2024," said Varun Beverages in a stock exchange filing.

The first-ever stock split corporate action since its inception has been declared by VBL in order to enhance the liquidity of the company's equity shares and to encourage the participation of small investors by making equity shares of the company more attractive to invest.

Varun Beverages Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "VBL is currently trading around Rs 1498, exhibiting a sideways trend. If the price closes above Rs 1545, it has the potential to rise to Rs 1600 and Rs 1700. On the downside, immediate support is found at Rs 1450. A reversal from this level could present a buying opportunity, with a short-term target of Rs 1600. The Relative Strength Index (RSI) is at 45, indicating the stock is in a neutral zone and may offer a potential reversal opportunity."

"Additionally, VBL is trading below both the 20-day and 50-day EMAs, suggesting a bearish short-term outlook. In summary, based on technical analysis and current market conditions, VBL presents a promising buying opportunity if signs of a reversal are observed near the support level. A target of Rs 1600 is achievable, with proper risk management, such as a stop-loss set at Rs 1400 to guard against downside risk," the analyst further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.