Multibagger in just 1 year; Board likely to announce stock split!

Earlier, the company declared bonus shares in the ratio of 1:2 for 3 consecutive years.

On Wednesday, the benchmark indices started the day lower. BSE Sensex is down by 0.18 per cent at a level of 59,621 and NSE Nifty-50 Index is lower by 0.13 per cent at a level of 17,638. 

Despite being a weak market, one of the gainers on BSE were the shares of Varun Beverages Ltd, which zoomed 2.31 per cent to Rs 1,445.60 per share. In the recent trading session, the stock has seen heavy buying and saw a spurt in volume by more than 7 times on April 18, 2023. 

Varun Beverages Ltd announced that a meeting of the Board of Directors of the company will be held on Tuesday, May 02, 2023 inter-alia, to consider and approve the following: 

1) Unaudited Financial Results of the Company, both on Standalone and Consolidated basis, for the Quarter that ended March 31, 2023. 

(2) Proposal for sub-division/split of existing equity shares of the company having a face value of Rs 10 each, fully paid up, in such manner as may be determined by the Board of Directors subject to the approval of equity shareholders of the company and/or any other regulatory/statutory approvals (if any). 

Varun Beverages Ltd 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. Earlier, the company declared bonus shares in the ratio of 1:2 for 3 consecutive years.

The shares of the company have an ROE of 33.50 per cent and a ROCE of 27.85 per cent. The stock gave multibagger returns of 106.49 per cent in just 1 year whereas BSE Sensex Index was up by 5.11 per cent. 

Investors should keep an eye on this large-cap stock.