Anil Singvhi highlights key triggers in Varun Beverages ahead of results announcement

Zee Business Managing Editor Anil Singhvi highlights the key triggers that investors should keep in mind ahead of the results of Varun Beverages.  He said that this stock should be bought at current levels. Apart from results the company is going to focus on Bonus as well. He said this is the key reason why the stock is in focus today.

Kushal Gupta, Senior Research Analyst at Zee Business said that Varun Beverages is the second largest franchise in the world (outside US) of carbonated soft drinks (“CSDs”) and non-carbonated beverages (“NCBs”) sold under trademarks owned by PepsiCo and a key player in the beverage industry. He is expecting strong numbers from Varun Beverages oin account of strong operating margins and Higher Revenue.

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Kushal said that the company may think of allotting Bonus share also along with the results. The revenue of the company could be higher by 21% at 2050 cr, the higher growth on Revenue would be on account of southern and western markets territory that the company took.  

नतीजों से पहले क्या Varun Beverages में बनेगा पैसा?

नतीजों से पहले जानिए शेयर में कमाई के ट्रिगर्स....

नतीजे आएंगे कमाई कराएंगे में बनाइए सटीक स्ट्रैटेजी...#ResultsOnZee @AnilSinghvi_ @KushalGupta44 pic.twitter.com/PEgvtClKWY

— Zee Business (@ZeeBusiness) May 3, 2021

Kushal said that home consumption has been strong in the past few months. This will help the company to improve its profitability. The profitability of the company is expected to rise by 29% to Rs 350 cr. The margins are expected to be steady on account of strong operating leverage. The margins are expected to come around 17.1%. Reported profit will see growth of more than 100% due to one offs, however on an adjusted basis one can see growth of 10%.

Market Expert Himanshu said that the stock chart is seeing good positive set up. The stock witnessed correction at higher levels and it consolidated for some time. The stock will resume its uptrend once again it crosses the important resistance zone of Rs 1000 – Rs 1020. The target price on the stock would be Rs 1060 – 1075, stop-loss of Rs 970.