VBL Stock Split: Date, New Share Price And More Details

VBL Stock Split: Date, New Share Price And More Details

Varun Beverages Ltd. (VBL), the bottler of PepsiCo in India, has been having a great run at the bonuses after its announcement of a 1:2 stock split. Since the announcement, shares of the beverages giant have gone up close to 10%. In this article, we bring you all the details about the VBL stock split decision and what all the fuss is about.

VBL Stock Split Details

The board of Varun Beverages has green-lit a 1:2 stock split, subject to the approval of the company’s shareholders. The e-voting on the VBL stock split resolution began on May 4 and will continue till June 2. The results of the voting will be announced on June 3.

The record date for the VBL stock split will be announced after the resolution is approved by the company’s shareholders. The company expects to complete the process within two months from the date of approval. As per the company, the move is taken “to enhance the liquidity of the Company’s equity shares and to encourage the participation of small investors.”

VBL share price is around ₹1,558 at the time of writing. If the stock retains these levels at the time of the split, an investor who owns 1 VBL share on May 12 valued at around ₹1,558, would end up with 2 VBL shares post-split, valued at ₹779, each.

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VBL Recent Stock Performance

VBL has been having a great time at the bourses. The share has been hitting 52-week highs and has surged close to 9% in the past month. Even since the start of the year, the stock has climbed up over 16%. The company earlier this week, announced the acquisition of a 26.34% stake in Huoban Energy 7 Private Limited a special-purpose vehicle incorporated in December 2021 to supply solar power to consumers in the State of Maharashtra. The ₹2.12 crore deal further added to the positive sentiment towards the stock, and VBL’s share price zoomed up over 6% on May 10. The company’s market cap also breached the ₹1 lakh crore mark for the first time on May 10.

VBL Earnings For March Quarter

VBL’s financial performance in Q4 showcased an impressive growth trajectory. The company’s net revenue soared by 38% year-over-year to ₹3,893 crore, with total sales volumes registering a 24.7% increase. The company’s EBITDA jumped up 50% YoY to ₹798.04 crore. Net profits for the period stood at ₹429.1 crore, up close to 69% from the year-ago period. The company cited factors such as operational revenue growth, margin improvement, and India’s tax rate transition as the propellers for its earnings.

VBL Analyst Calls

The company’s strong earnings received mixed reactions from brokerages. Analysts at ICICI Securities maintained the ‘hold’ rating for the stock with a price target of ₹1,400. The brokerage firm said that while they are positive on the company, upside in the stock is capped at the company’s current valuation. Axis Securities, on the other hand, maintained its ‘buy’ rating for the stock with a price target of ₹1,600. The firm noted that VBL’s March quarter results was a beat on all counts. Motilal Oswal also maintained its ‘buy’ rating for the stock with a price target of ₹1,690.

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Posted In: NewsStock SplitFood & Beverage StocksVarun Beverages