VBL Acquires 26% Stake in Solar Power Company; Know the Details Here!  

Varun Beverages Limited (VBL) is a leading company that is engaged in the manufacturing of carbonated soft drinks and non-carbonated beverages. The Rs 1,00,000 crore company enjoys popularity of its brands like Pepsi, Diet Pepsi and SevenUp. As per the Indian Beverage Association, VBL is the second largest franchise in the world (outside of US) of carbonated soft drink sold under the trademarks owned by PepsiCo.

In its latest filing with the stock exchanges, the company reported an acquisition of 26.34% stake in Huoban Energy 7 Private Limited, a special purpose vehicle inter-alia engaged to supply solar power to consumers in the Maharashtra State. The company intends to obtain solar power (generation and supply) from the SPV for its existing facilities. Solar Power is environmentally friendly with the added advantage of a reduction in the power cost of its facilities. It invested Rs 2.12 crore in the acquisition at the price of Rs 17.05 per share.   

Meanwhile, the company posted stellar results past week as revenue jumped 47% YoY to Rs 3221.85 crore from Rs 2184 crore in March 2022. Also, net profit showed a robust growth of 90% YoY to Rs 372.92 crore from Rs 195.36 crore in the same quarter of the previous financial year. EPS has increased to Rs 5.74 in Q4FY23 From Rs 4.51 in March 2022.   

Interestingly, the stock has seen strong buying interest post the filing and has hit a fresh all-time high of Rs 1585 on NSE. Technically, it has also broken out from its ascending triangle pattern with huge volumes, which is a sign of medium-term bullishness. The 14-period daily RSI (70.21) lies in the super bullish territory and indicates strong strength in the stock. Overall, the stock is expected to show positive momentum in times to come given the strong business outlook and bullish technical parameters.   

On Wednesday, over 15 lakh shares have been traded and the VBL share price is up over 3% on the exchanges.