14 Oct A Big Wealth Creator Multibagger Stock | An investment of Rs 25,000 became Rs 1 crore in 7 years
Varun Beverages Limited (“VBL”) is the major player in beverage industry. The company is one of the largest franchisee of PepsiCo in the world (outside United Status). VBL has been associated with PepsiCo since the 1990s and have over 25 years consolidated its business association with PepsiCo. VBL is expanding its portfolio and distribution network. The Company manufactures, distributes and sells a wide range of carbonated soft drinks, non-carbonated soft drinks and packaged water under trademarks owned by PepsiCo.
PepsiCo brands manufactured and sold by VBL include Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda Orange, Seven-Up Nimbooz Masala Soda, Evervess Tropicana Slice, Tropicana Juices (100% and Delight), Seven-Up Nimbooz, Gatorade as well as packaged drinking water under the brand Aquafina. VBL is franchised for various PepsiCo products across 27 states and 7 union territories in India (responsible for ~90% of PepsiCo India’s beverage sales volume). VBL has also been awarded franchises for territories in Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe. India is the largest market and contributed ~80% of revenues from operations (net) in Fiscal 2022.
VBL was listed in the share market on November 8, 2016. Market Cap of the company is 1.90 Lakh crore (as on 14.10.2024). The price of one share of VBL is 585.40 (as on 14.10.2024 10.31 am). The company has performed surprising in previous 7-8 years.
The company has given bonuses and split every year except 2020.
If you search VBL share price on Google and check 5 years performance, you can clearly see, the investment of year 2019 grows more than 9X in 5 years.
Credit : Google
It means if you were invested 10000 and now it could become 90,000. Is it real figure?? No ..No wait.. You have missed bonuses and splits.. Let’s talk
In April VBL share price was 50/-
If you had invested 10000/- You had received near about 200 shares.
BONUSES
2019 1:2 (250)
2021 1:2 (375)
2022 1:2 (562)
SPLIT
2023 10 5 (1124)
2024 5 2 (2810)
You have 2810 VBL shares in 2024. The value of 2810 shares is : Ohhhhh
2810*585.40 = 16,44, 974
App. 164X in 5 years
32X each years.
Each year your invested 10k was turned into 3.2 lakh OMG….
Note: Sorry here dividend was not included, you can calculate yourself with dividend.
Now the scenario may be more profitable if you were invested in year 2017 Jan
Credit : Google
Share price of VBL was 23.50 in year 2017
If you had invested 23500 and bought 1000 stocks of VBL.
After all bonuses and splits, you should have total 16875 shares.
Value of your investment could be: 16875*585.40 = 98,78,625
9878625/23500 = 420X
Amazing 60X each year
Ohhhh no…. Your 23500 were turned into 14.10 Lakh each year
As you know I have not added Dividend in it. Otherwise You will be a crorepati
This is power of investment for long term. This stock may have amazing potential and having more opportunities for long term. As we know consumers of international brand soft drinks are increasing day by day. We all know that two brands are major competitors: The Coca Cola and PepsiCo. So there is ending process and progress in this sector.
Little investment can be turned into a big wealth! You can earn with your hard work in absence of smart work. Smart work is invest in smart ways of earn money. Take Risk and grow ahead.
Investors made 7000 to 1 crore in 20 years in this specialty chemical stock.
Disclaimer: You may consider buying these stocks; but please advising your financial advisor before thinking to buy. The article is based on our personal views and information collected from trusted sources. We are not registered with SEBI.
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