500 per cent returns and FIIs & DIIs increase stake: This multibagger FMCG stock to invest Rs 720 crore to increase production capacity; stock hits 52-week high!
Shares of the company gained more than 50 per cent in the last six months.
Varun Beverages Limited marked a significant milestone today as the Hon'ble Chief Minister of Himachal Pradesh, Shri Sukhvinder Singh Sukhu, laid the foundation stone for their new manufacturing plant in Kandrori, Kangra. This state-of-the-art facility, with a projected investment of approximately Rs. 270 crores, promises to not only boost beverage production but also create valuable employment opportunities in the region.
Earlier, Varun Beverages Limited signed a Memorandum of Understanding (MoU) with the Government of Jharkhand for a proposed manufacturing plant in Patratu, Jharkhand. The plant, with a total capital outlay of approximately Rs. 450 crores (subject to necessary approvals), is expected to significantly boost Varun Beverages production capacity. Owning to the positive news, the stock made a new 52-week high.
Varun Beverages has reported a strong second quarter for FY24, with net sales growth of 21.22 per cent to Rs 3937.76 crore, compared to Rs 3248.31 crore in the same quarter last year. The operating profit also saw a significant increase of 26.92 per cent. The net profit for the quarter increased by 30.09 per cent to Rs 514.48 crore, compared to the previous year's same quarter. The stock has delivered multibagger returns of more than 500 per cent in the last three years. Additionally, FIIs and DIIs increased their stake in the company in September 2023.
Varun Beverages Limited has been associated with PepsiCo since the 1990s and is a key player in the beverage industry and one of the largest franchisees of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks, and packaged water sold under trademarks owned by PepsiCo.
The stock has shown impressive growth and investors should keep a close eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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