This large-cap FMCG stock delivered over 500% returns in the last three years; do you hold it?

Varun Beverages Limited has delivered multibagger returns to its shareholders in the last three years. During this period, the company’s share price jumped from Rs 155.41 on October 01, 2020, to Rs 945.90 on September 28, 2023, representing an increase of over 500% in the three-year holding period.

An investment of Rs 1 lakh in the company’s shares one year ago would now be worth Rs 6.00 lakh.

Varun Beverages reported a strong first quarter for FY24, with net sales growing by 13.6% to Rs 5699.73 crore, compared to Rs 5017.58 crore in the same quarter last year. The operating profit also increased significantly by 23.12%, and the net profit for the quarter rose by 25.39% to Rs 1005.66 crore compared to the previous year’s same quarter.

Varun Beverages Limited has been associated with PepsiCo since the 1990s and is a key player in the beverage industry, serving as one of the largest franchisees of PepsiCo in the world. The company produces and distributes a wide range of carbonated soft drinks, non-carbonated drinks, and packaged water under trademarks owned by PepsiCo. Varun Beverages is part of the RJ Group, which is the largest franchisee for Pizza Hut, KFC, Cream Bell, and Costa Coffee in India.

Today, the stock opened at Rs 973.95, with a high and low of Rs 974.95 and Rs 942.25, respectively. The stock ended the trading session at Rs 945.85, down by 2.20%. It has a 52-week high of Rs 975.00 and a 52-week low of Rs 481.68, with a market capitalization of Rs 1,22,877 crore. Additionally, the company boasts a ROCE of 27.4% and an ROE of 33.5%.

The stock has exhibited impressive growth, and investors should closely monitor it.

Disclaimer: This blog is intended solely for educational purposes. The mentioned securities are provided as examples and not as recommendations. This information is based on various secondary sources available on the internet and is subject to change. Please consult with an expert before making investment decisions.