Varun Beverages stock rises 6% after board announces bonus issue, Q1 earnings

Shares of Varun Beverages rose over 6 per cent today after the board of the firm announced the issue of bonus shares in the ratio of 1:2. The stock touched an intraday high of Rs 1101, rising 6.17 per cent against the previous close of Rs 1,037.5 on BSE.

Varun Beverages stock has gained after two days of consecutive fall. The share trades higher than 20-day, 50-day, 100-day and 200-day moving averages but lower than 5 day moving averages.

The large cap stock has gained 69.57 per cent in one year and risen 20.13 per cent since the beginning of this year. Market cap of the firm stood at Rs 45,860 crore.

A total of 1.27 lakh shares of the firm changed hands, amounting to a turnover of Rs 13.57 crore on the BSE. Market cap of the company rose to Rs 45,860 crore.

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The company said bonus shares will be issued within two months from the date of board approval i.e. by June 27, 2022. It will now seek the nod of shareholders for the same.

The company also announced its March quarter earnings.

Varun Beverages reported a 96.67 per cent year-on-year (YoY) rise in net profit for the quarter ended March 31, 2022.

The firm reported a profit of Rs 254.21 crore for the quarter ended 31 March, 2022 against a net profit of Rs 129.26 crore in the year-ago period.

Sales rose 26.18 per cent to Rs 2827 crore in Q1 as compared to Rs 2240 crore in the corresponding quarter of last fiscal.

Ebitda of the PepsiCo bottler increased 39 per cent Y-o-Y, the company said. The company follows the January to December financial year.

Varun Beverages Limited produces bottles and distributes beverages. The company operates as a franchisee of PepsiCo. Its diversified business conglomerate includes beverages, quick-service restaurants, dairy and healthcare.