Shares of Varun Beverages gained nearly 5% on Wednesday, a day before it the stock trades record date for a 2:5 stock split. The company has set the same day as ex-date for the action.
The company has set Sept. 12 as the record date for splitting each share with a face value of Rs 5 into a number of equity shares with a face value of Rs 2 each, according to an exchange filing.
The last time the company had announced a stock split of Rs 10 to Rs 5 was in June 2023.
In the quarter ended June, the company reported 25.5% year-on-year increase in its net profit to Rs 1,261.8 crore from Rs 1,005.4 crore in the year ago quarter.
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The stock rose as much as 4.56% intraday to Rs 1,589.30 apiece, the highest level since Aug. 27, before paring gains to trade 2.6% higher at Rs 1,559.45 apiece as of 12:43 p.m. This compares to a 0.20% advance in the NSE Nifty 50.
The stock has risen 26.14% on a year-to-date basis and 64.9% in the last 12 months. Total traded volume on the NSE so far in the day stood at 1.31 times its 30-day average. The relative strength index was at 54.4.
Out of the 21 analysts tracking the company, 18 maintain a 'buy' rating and three recommend a 'hold,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 12.1%.
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