Varun Beverages shares trading flat post Q2 earnings; check details

Shares of Varun Beverages Ltd were trading flat in an otherwise strong market today after the firm reported its earnings for the quarter ended September 2023. Varun Beverages shares stood at Rs 951.40 against the previous close of Rs 951.70 on BSE. A total of 0.97 lakh shares of the firm changed hands, amounting to a turnover of Rs 9.28 crore on BSE. Market cap of the firm rose to Rs 1.23 lakh crore.  

The stock has a one-year beta of 0.6, indicating low volatility during the period.  

 In terms of technicals, the relative strength index (RSI) of Varun Beverages stands at 60.2, signaling the stock is neither oversold nor overbought. Varun Beverages shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and  200 day moving  averages.     

The firm logged a 30% rise in consolidated net profit to Rs 514.05 crore in the September 2023 quarter against Rs 395.48 crore in the year-ago period. 

Total revenue climbed 21.22% to Rs 3,937.75 crore in Q2 from Rs 3,248.3 crore in the year-ago period, led by double-digit growth in both Indian and International markets. Net realization climbed 5.6 percent to Rs. 176.3 per case powered by a rise in realisation per case primarily in international markets. 

Shares of Varun Beverages zoomed 202% and 512% in two years and three years, respectively.  

Meanwhile, Varun Beverages has emerged as Axis Securities’ top top pick in November. The brokerage expects the stock to hit Rs 1050 in year. Here’s what the brokerage said on the outlook of the stock.   

Varun Beverages is expected to continue its strong growth momentum on account of   

1) Normalcy of operation and market share gains of newly acquired territories post COVID-19 disruptions  

2) The management’s continued focus on the efficient go-to-market execution in acquired and underpenetrated territories as reflected in its recently commissioned Bihar plant operations (it has started gaining market share)  

3) Expansion in its distribution reach to 3.5 Mn outlets in CY23 from 3 million currently.  

4) Focus on expanding high-margin Sting energy drink across outlets coupled with increased focus on expansion of Value Added Dairy, sports drink (Gatorade) and Juice segment   

5) Robust growth in the international geographies.  

 

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