Varun Beverages shares rose nearly 10 per cent in last one month
Shares of the company are up 25% in the past three months and have more than doubled in the past year.
Varun Beverages, one of the world’s largest PepsiCo franchisee, has become the latest Indian company to cross Rs 1 lakh crore market capitalization. Shares of the bottling company on Wednesday surged 7 per cent in intraday trade, hitting a session high of Rs 1,620 on the BSE in the last three months, to close at Rs 1607.55, up 6.8 per cent.
On Wednesday, the company reached a market capitalization of Rs 1 lakh crore.
According to a Moneycontrol report, shares of Varun Beverages were trading at Rs 687.68 on May 11 last year. After that, there was a spurt in buying for Varun Beverages shares and it surged nearly 136 per cent year-to-date to hit a record high of Rs 1,620.
On Thursday, the stock had hit a 52-week high of Rs 1654 in the intraday session on the BSE, closing 1.73 per cent lower at Rs 1579.75. The market cap of Varun Beverages as on 11 May was Rs 1,02,613 crore.
Shares of the company are up 25% in the past three months and have more than doubled in the past year. The stock is up 475% in the past three years.
Varun Beverages continues to benefit from its relationship with PepsiCo, pan India distribution network, backward integration and growth in domestic consumption. According to CNBCTV18, the company has added several growth engines like launch of Sting, launch of dairy products and steady investment in capex and VC coolers.
Last week, brokerage firm MK Global Financial Services maintained buy rating on Varun Beverages but raised the target price to Rs 1,700 per share from Rs 1,660. According to the brokerage, the company’s growth can be seen due to better affordability of products, expected demand for new products and improvement in supply on the back of two new production units.
According to Axis Securities, Varun Beverages will continue its strong growth driven by multiple factors. These include normalization of operations due to COVID-19 and increased market share in newly acquired areas.
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