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Britannia back on investors' radar after sharp correction in past 3 months

Improving demand for cookies, intact structural growth story and attractive valuation augur well for the stock

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At present, the risk-reward equation for long-term investors in Britannia looks favourable

After a sharp correction in the past three months, some factors currently seem to support Britannia Industries’ stock, in which investor sentiment is reviving. The stock has gained about seven per cent in the last two trading sessions, sharply outperforming the Nifty FMCG index that inched up 0.4 per cent during the same period. The recent trigger is led by reports suggesting that good demand for cookies, at a time the biscuit industry is facing slower growth, could augur well for the company, which has an estimated 25-30 per cent revenue share of this segment. “The ...