BUSINESS

PepsiCo Bottler Stock Soars Over 400% in Three Years: Multibagger Alert

Shares of Varun Beverages Ltd have generated significant gains over the last three years, and the stock price has skyrocketed. In the previous three years, the stock of this beverage firm has increased by more than 400%.

At 11:57 AM on Thursday, the stock was down 0.74% and trading at Rs 880 a share on the BSE.

In the previous month, the shares had increased by over 8%. Its 52-week low share price is Rs.480, and its 52-week high share price is Rs.934.50.

The stock has increased more than 70% in the last year, and 33% so far this year.

The stock was trading at over Rs 170 level three years ago, but it has now soared to Rs 880 level.

Shares of Varun Beverages have appreciated by an amazing 235.49% during the last two years.

Notably, on August 22, 2022, the stock price of the FMCG company fell to Rs 454. In comparison to the current price of Rs 880, the shares have increased by 93% from their lowest point.

One of PepsiCo’s biggest franchisees outside of the US is Varun Beverages. The market value of the firm is approximately Rs. 1.14 lakh crore. According to market capitalization, Varun Beverages is the fourth-largest FMCG firm in India.

For quarterly results, the corporation adheres to a January-December timetable. The company’s overall net profit increased noticeably in the second quarter by 25.36%, reaching Rs 1,005.42 crore. Revenue growth and higher profitability were the main drivers of this expansion. In contrast, during the April through June quarter of the prior year, the firm had generated a net profit of Rs 802,01 crore.

In the June quarter, operating revenue increased by 13.6% to Rs 5,699.73 crore from Rs 5,017.57 crore in the corresponding quarter of the prior fiscal year. When compared to the base quarter, the continuous improvement in the mix of smaller SKUs (250 ml) was responsible for the 8.3% rise in net realisations to Rs 179.

Compared to the Rs 1,250.4 crore recorded in the same quarter last year, operating profit, or EBITDA, climbed by 21% to Rs 1,510.9 crore in Q2. Higher gross margins and operational savings helped to support this increase in EBITDA. Its EBITDA margins were 26.5% compared to 25% in the same time last year.

Earnings before interest, taxes, depreciation, and amortization are referred to as EBITDA.

 

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