Shares of Pepsico bottler Varun Beverages gained 6 per cent in early deals today after the FMCG stock truned ex-split in the ratio of 2:5. On BSE, the stock surged 6 per cent to Rs 665.65 against the previous close of Rs 627.60.
The multibagger stock has delivered returns of 210 per cent and 429 per cent in two years and three years, respectively.
The stock has gained in three out of the four trading sessions so far this week.
Varun Beverages had earlier announced that it will split its equity shares carrying a face value of Rs 5 into equity shares with a face value of Rs 2.
The company had fixed September 12 as the record date for the stock split.
Last year, the company had decided to split one equity share of face value of Rs 10 into shares of face value of Rs 5 apiece.
A stock split is generally considered by a company to increase its outstanding shares, and also improve trading liquidity by making the stock more affordable to its shareholders.
Varun Beverages has regularly rewarded shareholders with bonus issues, dividends or a split of its equity share.
In terms of technicals, the relative strength index (RSI) of Varun Beverages stands at 55.7, signaling the stock is trading neither in the overbought nor in the oversold zone. Varun Beverages shares stand higehr than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
The FMCG stock fell to a 52 week low of Rs 331.28 on October 26, 2023 and hit a 52 week high of Rs 682.84 on BSE.
On NSE, the stock surged to Rs 665. It closed at Rs 1569.15 in the previous session.
Varun Beverages reported a 25.2 per cent year-on-year (Y-o-Y) rise in net profit to Rs 537.3 crore in Q1 against a net profit of Rs 429.1 crore in the same period last year. The company follows the January-December financial year. Net sales rose 10.9 per cent to Rs 4,317.3 crore in Q1 from Rs 3,893 crore in the year-ago period.
Varun Beverages is a beverage company. It operates franchisee of PepsiCo. The company produces and distributes a range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo.
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