Stock split 2024: Varun Beverages Ltd share price gained 5% in the opening trades on Thursday. The stock remains in focus as the shares turn ex-date for a stock split today (12 September, 2024). The shares of the second-largest PepsiCo franchisee globally would be divided from shares having a face value of ₹5 each to shares with a face value of ₹2.
The Varun Beverages share price opened at ₹640.15 on the BSE on Thursday, higher than previous close of ₹627.60. The Varun beverages share price thereafter gained further to intraday highs of ₹665.65 marking gains of more than 5%
The Varun Beverages share price already had risen close to 5% ever since the announcement made by the company on stock split and Thursday share price rise added further to gains
As per the release by Varun Beverages on 2 September 2024, the Board of Directors of the company had fixed Thursday, September 12, 2024 as the “Record Date” for determining entitlement of Equity Shareholders for the purpose of sub-division or 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.
Varun Beverages share price has risen 26.61% year to date and is up 71% in last one year.
Varun Beverages remains among top picks of Mirae Asset Capital Markets who had given Varun Beverages share price target of ₹1,734 (prior to stock split) offering an expected return of 10% from the current share price. Varun Beverages has reported a 28.7% year-over-year increase in Q2CY24 revenue to ₹73.3 billion, with a 28.1% rise in volume. Gross margins improved to 53.7%, and Ebitda margins reached 27.2%. The company showed strong performance in both the Indian and international markets, said Mirae Asset.
Those at Motilal Oswal Financial Services also had maintained positive ratings with a target price of ₹1850 post Q2FY24 results. Management had guided a double-digit volume growth in the domestic market going forward, while international market (mainly Zimbabwe) would rebound to a healthy volume growth from 3QCY24, highlighted analysts. MOFSL had largely maintain their CY24,CY25 and CY26 earnings estimates for Varun Beverages.
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