Buy Multibagger FMCG Dividend Stock, TP Rs 1500: Motilal Oswal Recommends

Leading brokerage firm Motilal Oswal has recommended investors to buy large cap FMCG stock Varun Beverages Ltd and assigned target price of Rs 1500 apiece. Current market price of Varun Beverages shares on BSE is Rs 1341.60 apiece with intraday gain of 3.03%. If you buy Varun Beverages shares at current market price of Rs 1341.60 apiece, you can fetch potential return of 11.81%. Board of Directors of Varun Beverages on February 5, 2024 recommended final dividend of Rs 1.25 per equity share of the nominal value of Rs 5/- each for the financial year ended December 31, 2023. Check details below:

Varun Beverages Recommends 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 Stock Performance & Return: The 52-week high price of Varun Beverages shares on BSE is Rs 1380.45 apiece and 52-week low price is Rs 569.00 apiece, respectively. The company has a market capitalisation of Rs 1,74,368.74 crore. Varun Beverages shares rallied 42% in last 3-months, gained 63% in last 6-months, soared 119% in last 1-year, and offered return of 323% in last 2-years. In last 3-years, the scrip jumped 570%.

Earlier on December 19, 2023 Varun Beverages informed BSE via a regulatory filing that it seeks to acquire a 100% stake in South-Africa based The Beverage Company along with its wholly-owned subsidiaries BevCo.

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.

Varun Beverages Inked MoU With Jharkhand Govt: The company in its BSE filing dated December 19, 2023 stated, "We would like to inform you that our Company has signed a Memorandum of Understanding (MOU) with Government of Jharkhand on December 18, 2023 for our proposed manufacturing plant in Patratu, Jharkand with a total capital outlay of app. Rs. 450 Crore (Rupees Four Hundred and Fifty Crore only) (subject to necessary approvals) when fully commissioned in due course."

Stock Split In June 2023: Earlier this 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.

Disclaimer:

The stock has been picked from the brokerage report of Motilal Oswal. 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.