Britannia Industries hits new high; crosses Rs 5,000-mark

The stock hit a new high of Rs 5,057, up 1% on the BSE, trading higher for the fourth straight trading days.

Britannia Industries hit a new high of Rs 5,057, up 1% on the BSE in otherwise subdued market. The stock was trading higher for the fourth straight trading days, seen its market capitalization crossing Rs 600 billion mark in intra-day trade on Tuesday.

Britannia Industries has outperformed the market by 5% in past one week, as compared to 2% rise in the S&P BSE Sensex. In past one year, the stock rallied 54% against 19% gain in the benchmark index.

Since February 12, 2018, post October-December (Q3FY18) results, Britannia up 9% after the company said its consolidated net profit rose 19.6% to Rs 2.64 billion on 13% growth in net sales to Rs 25.58 billion over the previous year quarter.

Analyst at JP Morgan gave an ‘overweight’ rating on the stock with price target price of Rs 5,150 as the brokerage firm believe premium valuations are justified considering good in-market execution, growing focus on innovation/diversification and healthy medium-term EPS growth trajectory (20% EPS CAGR over FY18-20E).

Britannia’s growth strategy based on driving market share gains in the core biscuits category, expanding into new categories (macro snacking, Chipita JV, dairy) and overseas markets bodes well for sustaining healthy revenue growth over the medium term, the brokerage firm said in recent report.

“Britannia’s innovations, wider direct reach, premiumisation and cost-saving measures are expected to boost its growth momentum. Valuations, however, are high; hence, we maintain our ‘Hold’ rating on the stock,” analysts at Anand Rathi Share and Stock Brokers said in company update. The stock is however trading higher against brokerage firm target price of Rs 4,500.

Britannia is among the most trusted food brands, and manufactures India’s favorite brands like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold which are household names in India. Britannia’s product portfolio includes Biscuits, Bread, Cakes, Rusk, and Dairy products including Cheese, Beverages, Milk and Yoghurt.

At 01:29 pm; the stock was trading 0.67% higher at Rs 4,994 on the BSE, against 0.14% decline in the S&P BSE Sensex. Britannia’s market capitalisation stood at Rs 599.57 billion, the BSE data shows.