Varun Beverages shares rise 4%, mcap at Rs 2 lakh crore as Axis Securities sees 21% upside
Varun Beverages stock gained 4.09% to Rs 1,553 against the previous close of Rs 1,492.40 on BSE. Market cap of FMCG firm climbed to Rs 2 lakh crore.
- Aug 21, 2024,
- Updated Aug 21, 2024 3:51 PM IST
Shares of Varun Beverages rose 4% in the afternoon session on Wednesday after brokerage Axis Securities assigned a price target of Rs 1,800 to the FMCG stock. The fresh price target amounts to an upside of 21% against Tuesday’s close. Varun Beverages stock gained 4.09% to Rs 1,553 against the previous close of Rs 1,492.40 on BSE. Market cap of FMCG firm climbed to Rs 2 lakh crore.
The stock hit a record high of Rs 1707.10 on July 29, 2024 and a 52-week low of Rs 828.20 on October 26, 2023.
A total of 2.33 lakh shares of the firm changed hands, amounting to a turnover of Rs 35.75 crore on BSE. The multibagger stock zoomed 212% in two years and rose 475.35% in three years.
The brokerage said Varun Beverages has consistently outperformed its peers despite a volatile environment, driven by key strategic moves listed below.
1. Successful acquisition of The Beverage Company, expanding its footprint in South Africa and DRC.
2. Continued focus on distribution expansion, primarily in rural areas.
3. Strengthened manufacturing capacity through multiple greenfield and brownfield projects, reducing transportation costs.
4. A new agreement with Premier Nutrition Trading LLC (a subsidiary of PepsiCo) to produce and sell “Simba Muncheiz” in Zimbabwe and Zambia.
5. Recent plans to manufacture and package snacks like Cheetos, enhancing margins.
The five initiatives above position Varun Beverages for sustained long-term growth and profitability, said the brokerage.
Varun Beverages is a beverage company. It operates franchisee of PepsiCo. The company produces and distributes a 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.
Shares of Varun Beverages rose 4% in the afternoon session on Wednesday after brokerage Axis Securities assigned a price target of Rs 1,800 to the FMCG stock. The fresh price target amounts to an upside of 21% against Tuesday’s close. Varun Beverages stock gained 4.09% to Rs 1,553 against the previous close of Rs 1,492.40 on BSE. Market cap of FMCG firm climbed to Rs 2 lakh crore.
The stock hit a record high of Rs 1707.10 on July 29, 2024 and a 52-week low of Rs 828.20 on October 26, 2023.
A total of 2.33 lakh shares of the firm changed hands, amounting to a turnover of Rs 35.75 crore on BSE. The multibagger stock zoomed 212% in two years and rose 475.35% in three years.
The brokerage said Varun Beverages has consistently outperformed its peers despite a volatile environment, driven by key strategic moves listed below.
1. Successful acquisition of The Beverage Company, expanding its footprint in South Africa and DRC.
2. Continued focus on distribution expansion, primarily in rural areas.
3. Strengthened manufacturing capacity through multiple greenfield and brownfield projects, reducing transportation costs.
4. A new agreement with Premier Nutrition Trading LLC (a subsidiary of PepsiCo) to produce and sell “Simba Muncheiz” in Zimbabwe and Zambia.
5. Recent plans to manufacture and package snacks like Cheetos, enhancing margins.
The five initiatives above position Varun Beverages for sustained long-term growth and profitability, said the brokerage.
Varun Beverages is a beverage company. It operates franchisee of PepsiCo. The company produces and distributes a 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.