Espresso shot of the day – Varun Beverages Ltd up by 8.24 percent

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Espresso shot of the day – Varun Beverages Ltd up by 8.24 percent

November 01, 2021
Espresso shot of the day – Varun Beverages Ltd up by 8.24 percent

VARUN BEVERAGES LTD 921.00  (+8.24%) BSE – INE200M01013 | 1ST NOVEMBER 2021

Varun Beverages Limited (VBL or Company) is a key player in the beverage industry and is one of the largest franchisees of PepsiCo in the world (outside of USA). The Company produces and distributes a wide 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. PepsiCo CSD brands produced and sold by VBL include Pepsi, Diet Pepsi, Seven-Up, Mirinda Orange, Mirinda Lemon, Mountain Dew, Mountain Dew Ice, Seven-Up Nimbooz Masala Soda, Evervess, Sting, Gatorade and Slice Fizzy Drinks. PepsiCo NCB brands produced and sold by the Company include Tropicana Slice, Tropicana Juices (100%, Delight, Essentials), Nimbooz, as well as packaged drinking water under the brand Aquafina.
VBL has been associated with PepsiCo since the 1990s and have over two and half decades consolidated its business association with PepsiCo, increasing the number of licensed territories and sub-territories covered by the Company, producing and distributing a wider range of PepsiCo beverages, introducing various SKUs in the portfolio, and expanding the distribution network. As on date, VBL has been granted franchises for various PepsiCo products across 27 States and 7 Union Territories in India. VBL has 31 manufacturing plants in India and 6 manufacturing plants in international geographies (two in Nepal and one each in Sri Lanka, Morocco, Zambia and Zimbabwe).

Recent Drivers

  • On Oct 29, 2021, Varun Beverages reported a 59.7% increase in consolidated net profit to Rs 257.90 crores in Q3 CY2021 from Rs 161.47 crores in Q3 CY2020.
  • On Oct 29, 2021, revenues from operations of Varun Beverages grew by 33% YoY to Rs 2,398.16 crores during Q3 CY2021.
  • On Oct 29, 2021, The Board of Varun Beverages at its meeting approved setting up a new plant for manufacturing plastic preforms and plastic closures at Kathua, Jammu & Kashmir and another new plant for manufacturing juice, carbonated soft drinks and packaged drinking water at Baruni, Begusarai, Bihar.
  • On Aug 2, 2021, the board of directors considered and approved the following the payment of interim dividend of Rs. 2.50 per Equity Share for the financial year 2021 on the total issued, subscribed and paid-up 43,30,33,080 Equity Shares of the nominal value of Rs. 10/- each.
 (Sources: Business Standard, BSEIndia)


Technical Force*

  • S&P BSE 200 month till date gain up by 1.75 %
  • 3 months avg. NSE volume- 6,49,084
  • Quantity traded: 1,15,006 | Deliverable quantity: 73,225 (63.67%)
  • Stock price has jumped more than 110 % from one-year low level: 430.35 (Nov 02, 2020)
  • Daily RSI (14) is near oversold territory today
  • 52-week-high: 954.40 | 52-week-low: 430.35


Key Pivot  (Yearly)

R4

R3

R2

R1

PP /FIB PP

S1

S2

S3

S4

Pivot Point

-

 1085.82

875.95

743.12

533.25

400.42

190.55

57.72

-

Fibonacci Pivot

875.95

745.04

664.16

612.07

533.25

454.43

402.34

321.46

190.55


Today’s Close

921.00

SMA

BSE

10 DAY

847.09

20 DAY

876.16

50 DAY

885.20

200 DAY

736.93


Some Key Ratios (Source: BSE)

Market Cap: 39,882.35 crores

PE: 87.20

OPM%: 19.73

ROE%: 10.44

Promoters holding%: 64.89

Prev. Close: 850.85


Chart And Technical Force data taken from the Binge desktop app.

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Chandresh Khona
by Chandresh Khona

Product Offerings Head

A teacher, writer, travel buff and now Espresso's Product Offerings Head. Ten years here has allowed me to lead the digital team at Sharekhan. My true passion lies in stock market charts.