Shares of Pepsico bottler Varun Beverages have delivered multibagger returns in five years. The multibagger stock, which stood at Rs 55 on October 3, 2019 closed at Rs 588.05 on October 3, 2024 giving 969.18% returns during the period. In comparison, Sensex climbed 119% in five years.The multibagger stock has delivered returns of 175% and 385.27% in two years and three years, respectively.
In the previous session, the stock ended 3.98% lower at Rs 588.05 on BSE.
A total of 6.58 lakh shares of the firm changed hands, amounting to a turnover of Rs 38.96 crore. Market cap of the firm fell to Rs 1.91 lakh crore.
In terms of technicals, the relative strength index (RSI) of Varun Beverages stands at 37.4, signaling the stock is trading neither in the overbought nor in the oversold zone. Varun Beverages shares stand lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day but higher than the 200 day moving averages.
The near term weakness in Varun Beverages can be attributed to profit booking in the FMCG stock. The stock is down 10% in two weeks and lost 9% in three months. In a week, the FMCG stock has declined 6.15%.
The FMCG stock fell to a 52 week low of Rs 331.28 on October 26, 2023 and hit a record high of Rs 682.84 on July 29, 2024.
Meanwhile, brokerage house Citi is bullish over Varun Beverages. The company has strong market position in India and growth opportunity in soft drinks.
It has assigned a price target of Rs 800 to the multibagger stock.
Varun Beverages will likely benefit from expanding geographic reach, the brokerage said adding that Revenue/EPS to grow at 23%/29% CAGR over CY23-26E.
Varun Beverages reported a 26 per cent year-on-year (Y-o-Y) rise in net profit to Rs 1262 crore in Q2. The company follows the January-December financial year.
Revenue climbed 28 per cent to Rs 7197 crore in Q2 from Rs 5611.4 crore in the year-ago period.
EBITDA climbed 32% to Rs 1,991 crore for the second quarter of the calendar year 2024.
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.