- Varun Beverages reported a net income of 12.5 billion rupees for the second quarter.
- This reflects a 26% increase year-over-year, but it missed the estimated 12.76 billion rupees.
- The company generated 73.3 billion rupees in revenue, marking a 29% growth from the previous year.
- However, the revenue was slightly below the estimated 73.44 billion rupees.
- Total costs for the quarter amounted to 57.1 billion rupees, a 29% increase year-over-year.
- A dividend of 1.25 rupees per share was declared.
- Varun Beverages approved a stock split, changing the face value of shares from 5 rupees each to 2 rupees.
- The stock is currently rated with 17 buys, 4 holds, and 0 sells by analysts.
Varun Beverages on Smartkarma
Analysts on Smartkarma, like Sudarshan Bhandari, are discussing the future prospects of Varun Beverages. In his report titled “What Next for Varun Beverages: The Next Leg of Growth Drivers,” Bhandari expresses a bullish sentiment towards the company’s growth potential. He highlights Varun Beverage’s track record of driving high growth through acquisitions, product portfolio and geographical expansions, and operating leverage. The focus is now on tapping into interesting geographies and products that will propel Varun Beverages to the next level of growth. Bhandari suggests that the company has the potential to replicate success stories like Sting if it can repeat its history of commanding high growth.
A look at Varun Beverages Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Varun Beverages, a company that produces and distributes beverages globally, seems to have a promising long-term outlook based on the Smartkarma Smart Scores. With a high Growth score of 5, Varun Beverages is positioned well for future expansion and development in the beverage industry. This signifies strong potential for increasing market share and revenue over time.
Additionally, the company has shown good Momentum with a score of 4, indicating positive market sentiment and potential upward price trends. While Value and Dividend scores are moderate at 2, Varun Beverages demonstrates Resilience with a score of 2, hinting at a solid foundation to weather market volatility and uncertainties.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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