Multibagger Alert: PepsiCo Bottler Stock Surges Over 400% In 3 Years; Details – News18

Over the past three years, Varun Beverages Ltd shares have provided substantial returns, with a massive surge in the stock price. The stock of this beverages company has surged more than 400% in the last three years.

The stock was trading at Rs 880 per share, down 0.74% percent, on BSE at 11:57 AM on Thursday.

The shares have grown nearly 8% in the past one month. Its 52-week low is Rs 480 per share and 52-week high is Rs 934.50 per share.

In the past one year the stock has surged more than 70% and 33% this year so far.

Three years ago the stock was trading at nearly Rs 170 level and now it has surged to Rs 880 level.

In the span of two years, shares of Varun Beverages have seen an impressive rise of 235.49% in value.

Notably, the FMCG firm’s stock hit its lowest point of Rs 454 on August 22, 2022. From its lowest level the shares have recovered 93% compared to the current price of Rs 880.

Varun Beverages is one of the largest franchisees in the world , outside the US, of PepsiCo. The company’s market capitalisation currently stands at Rs 1.14 lakh crore. Varun Beverages is the fourth largest FMCG company in India in terms of market capitalisation.

The company follows the January-December schedule for quarterly earnings. In the second quarter, the firm experienced a noteworthy 25.36% increase in consolidated net profit, amounting to Rs 1,005.42 crore. This growth was driven by increased revenue and improved margins. In comparison, the company had achieved a net profit of Rs 802.01 crore in the April-June quarter of the previous year.

During the June quarter, revenue from operations surged by 13.6% to reach Rs 5,699.73 crore, compared to the revenue of Rs 5,017.57 crore in the same period of the previous fiscal year. The 8.3% increase in net realisations to Rs 179 was attributed to the ongoing enhancement in the mix of smaller SKUs (250 ml) when compared to the base quarter.

Operating profit or EBITDA increased 21% to Rs 1,510.9 crore in Q2, in contrast to the Rs 1,250.4 crore reported in the same quarter of the previous year. This growth in EBITDA was supported by higher gross margins and operational efficiencies. Its EBITDA margins stood at 26.5% as opposed to 25% in the year-ago period.

EBITDA refers to earnings before interest, taxes, depreciation, and amortisation.