On Thursday, September 12, 2024, Varun Beverages Ltd. experienced a notable increase in its share price, rising by 5% in early trading. This uptick is attributed to the shares trading ex-split on this date.
As part of the stock split, the company’s shares will be subdivided from a face value of ₹5 to ₹2 each, making them more accessible to investors. If you're looking to buy shares online, this might be an opportune time to consider Varun Beverages.
Share price performance
The Varun Beverages share price started at ₹640.15 on the Bombay Stock Exchange (BSE) this morning, surpassing the previous closing price of ₹627.60. The stock then reached intraday highs of ₹665.65, reflecting an increase of over 5%.
This rise follows a similar trend observed since the company's announcement regarding the stock split. For those interested in buying shares online, monitoring these fluctuations could be beneficial.
Details of the stock split announcement
According to an announcement made by Varun Beverages on September 2, 2024, the Board of Directors set September 12, 2024, as the "Record Date" for the stock split. This adjustment involves converting each share with a face value of ₹5 into multiple shares with a face value of ₹2. The decision, approved through a Postal Ballot on August 30, 2024, aims to enhance liquidity and make it easier for investors to buy shares online.
Year-to-date performance
Varun Beverages has shown impressive performance over the past year, with its share price increasing by 26.61% year-to-date and 71% over the last year. This strong performance, coupled with the stock split, could make it an attractive option for those looking to buy shares online. Analysts suggest that this growth trend may continue, especially with the anticipated effects of the stock split.
Analyst opinions and future outlook
Mirae Asset Capital Markets has named Varun Beverages as a top pick, setting a pre-split target price of ₹1,734. This forecast indicates a potential return of 10% based on current prices. The company's Q2CY24 revenue saw a 28.7% increase to ₹73.3 billion, with a significant rise in volume and improved margins. Mirae Asset believes that Varun Beverages is well-positioned for continued success, making it a worthwhile consideration if you plan to buy shares online.
Similarly, Motilal Oswal Financial Services has maintained a positive outlook with a target price of ₹1,850 following the Q2FY24 results. They predict double-digit growth in domestic volumes and a rebound in international markets, particularly in Zimbabwe, starting from the third quarter of CY24. Their consistent earnings estimates for Varun Beverages further suggest stability and potential for those looking to buy shares online.
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