📈 Varun Beverages Share Price Witnesses a Steady Rise of 18% on Wednesday Trading Session:
The share price of Varun Beverages stood at INR 1,380.45 with a significant surge of 18% during the Wednesday trading session. The company experienced robust buying in its shares, following the announcement of its decision to acquire South African beverage company BevCo and its wholly-owned subsidiaries.
🌍 Expanding Its Presence in the African Market:
Varun Beverages, the bottler of PepsiCo’s franchise, expressed its intention to expand its business in the African market by acquiring BevCo. BevCo is the owner of the PepsiCo franchise in South Africa, Lesotho, and Eswatini. Additionally, the company holds distribution rights in Namibia and Botswana. The acquisition deal, valued at INR 1,320 crore, is expected to be completed by July 31, 2024.
💰 Impressive Financial Performance:
In the fiscal year 2023, Varun Beverages recorded a net revenue of INR 1,590 crore. Over the past five days, the share price of Varun Beverages has witnessed a growth of 20%. In the last month, the company’s shares have delivered a return of 25% to its investors. Furthermore, over the past six months, the share price of Varun Beverages has surged by 62%. Year-to-date, investors have gained a remarkable profit of 97%. Notably, Varun Beverages has provided its investors with a return of over 1,100% in the last five years.
📊 Share Price and Market Capitalization:
During the trading session on Friday, December 22, 2023, the share price of Varun Beverages experienced a decline of 3.42% and settled at INR 1,247. The total market capitalization of Varun Beverages currently stands at INR 1,69,398.14 crore.
📈 Analyst Recommendations:
Leading brokerage firm CLSA has given a “Buy” rating to Varun Beverages’ shares and set a target price of INR 1,419. Jefferies has set a target price of INR 1,100 for Varun Beverages’ shares. Motilal Oswal Securities views the acquisition of BevCo as a positive development for Varun Beverages and has set a target price of INR 1,285 per share.
(Note: The above information is accurate as of December 22, 2023)
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