Varun Beverages joins ₹1 trillion M-Cap league, stock gains 125% in a year
Varun Beverages, the second largest bottling company of PepsiCo outside the US, has become the latest Indian firm to enter the elite club of companies having market capitalisation (m-cap) of more than one trillion mark.
The stocks of the company accumulated about 20% returns on a cumulative basis. Data showed that they rose by 125% in the past year as consistent top-line growth along with market share gains cheered investor sentiment. In the last three year the stock has surged 475%.
Shares of Varun Beverages surged close to 7% on Wednesday — biggest single day gains over the last three months. The stock has gained 21.5% so far in 2023 after a 123% returns in 2022.
Today, the stock hit a fresh 52-week high of ₹1654 apiece on BSE in intraday session before closing 1.73% lower at ₹1579.75 apiece. As on May 11, the Varun Beverages’ market cap stood at ₹1,02,613 crore.
Varun Beverages reported 69% y-o-y increase in March quarter profit to ₹429 crore. The net revenue of the firm increased by 38% to ₹38,93 crore
Varun Beverages continues to benefit from its relationship with PepsiCo, pan-India distribution network, backward integration, and increased in-home consumption. The company has added multiple growth engines such as launch of Sting, launch of dairy products and steady investments in capex and visi coolers, according to CNBCTV18.
Varun Beverages produce and distribute a wide range of carbonated soft drinks and a large selection of non-carbonated soft drinks, including packaged drinking water.
Brands sold by the beverage firm include Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Seven-Up Nimbooz Masala Soda, Evervess Soda, Duke’s Soda and Sting.
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