Varun Beverages Up By 4.67%; Stock Shows Bullish Trend

Shares of Varun Beverages were up by 4.67% at ₹622.05 on Thursday’s trading session. As of now, Sensex is trading at 80,152.72, down by 0.085%.

On technical aspects, the stock traded above the short term simple moving averages of 5, 10, 20 day while long term moving averages were in the range of 50, 100 & 300 days.

Trends observed in Varun Beverages

As per a technical analysis done by Mint, the stock reported a strong bullish trend while maintaining a positive price movement at higher volumes. As per a fundamental analysis, the company reported a Return on Equity (ROE) of 34.15% and current Price to Earnings (P/E ratio) of 77.64.

During the September quarter, mutual fund (MF) holding surged by 1.62% in June to 1.69% in the September quarter, whereas investments held by Foreign Institutional Investors (FIIs) decreased from 25.32% in June to 24.18% in Q3.

Recent Developments

The company announced a stock split of 2:5 in September leading to reduction in its face value from ₹5 to ₹2 per share. The move was well received by the street as the stock increased by 6% on the first day after its split.

Q2 results

Varun Beverages reported a profit after tax (PAT) of ₹1261.83 crore, an increase of 26% on a year-on-year (YoY) basis. The revenue grew to ₹7,196.86 crore.