ilmscore | Varun Beverages: A Hot Stock to Watch | CA Rachana Ranade

Varun Beverages: A Hot Stock to Watch | CA Rachana Ranade

Published: 2025-04-02
Status: Available | Analyzed

Predictions from this Video

Total: 10
Correct: 7
Incorrect: 0
Pending: 3
Unrated: 0
Prediction
Topic
Status
Varun Beverages plans to acquire Pepsi's business in Tanzania and Ghana as part of its international expansion strategy.
"They have entered into share purchase agreements to acquire Pepsi's business in Tanzania and also in Ghana."
VBL
Correct
Varun Beverages is diversifying into the food snacking business by entering an agreement to manufacture and package Cheetos in Morocco.
"They have also expanded into the food snacking business to diversify their revenue streams where they have entered into an exclusive share placement agreement to manufacture and package Cheetos where in Morocco"
VBL
Correct
Funds raised through a Qualified Institutional Placement (QIP) in November 2024 were used for debt repayment and acquisitions, contributing to the company becoming nearly debt-free.
"Whatever money was received through this QIP was used for repayment of debt and some of them was used for acquisitions."
VBL
Correct
Reduced interest expenses due to significant debt repayment are expected to positively impact Varun Beverages' profitability.
"because they have paid off a massive part of their debt now the interest amount will go down if the interest amount goes down their profitability ideally should increase by that extent"
VBL
Correct
The issuance of new shares through a QIP could lead to a decrease in Earnings Per Share (EPS) for Varun Beverages, potentially causing an increase in its Price-to-Earnings (PE) ratio.
"if the number of shares increases their EPS may go down and if EPS goes down then there is a possibility that their PE may further increase."
VBL
Pending
Varun Beverages will face currency fluctuation risks due to its increased focus on exports.
"more and more you focus on export. There is one risk that automatically comes up with it. This is the currency fluctuation risk. So, this is what they will be exposed to."
VBL
Correct
Campa Cola is identified as a potential risk to Varun Beverages' market position.
"And also one more risk that they will face will be about this campa cola thing that I'm about to discuss just a few minutes ago"
VBL
Pending
Changes in overall customer preferences represent a risk for Varun Beverages.
"and also if there could be a change in overall customer preferences."
VBL
Pending
The April to June quarter is considered crucial for Varun Beverages' financial performance.
"the April to June quarter is going to be really, really important for them."
VBL
Correct
Varun Beverages is strategically focusing on international expansion, particularly in the African market.
"We talked about how they are focusing on their international expansion strategy, especially in Africa."
VBL
Correct