Why Britannia Industries Share Price Rises in a Falling Market

Britannia Industries stock price rose at the start of trading in an otherwise declining market today after FMCG Company announced an interim dividend for fiscal year 2019-20. Britannia Industries’ share price reached 3.23% or Rs 291 to Rs 3,043 from the previous close of Rs 2,948 on BSE. Britannia stock is trading above its 5-day, 20-day, 50-day, 100-day and 200-day moving averages. While Sensex lost 495 points to 31,367, Nifty lost 150 points to 9,165.

Britannia Industries stock has lost 1.04% since the start of this year and has risen 0.66% in the past year. The stock has gained 26.81% in the past month.

A total of 0.16 lakh of shares changed hands for a turnover of Rs 4.67 crore on BSE.

The company’s market capitalization rose to Rs 71,659 crore.

The cookie-making company announced an interim dividend of Rs 35 per share for the 2019-2020 fiscal year, ahead of the announcement of its March quarter results.

Brokerage firm Edelweiss Securities expects net profit to increase 1.6% year-on-year on a 6.9% decline in revenue. The brokerage also sees EBITDA drop 10.10% in the fourth quarter.

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HDFC Securities expects Britannia to post a 9.5% increase in net income, while net sales and EBITDA could contract 2% and 4% year-on-year, respectively.

Rising commodity prices, the coronavirus pandemic outbreak against a backdrop of slowing consumption are expected to drive single-digit profit increases for the quarter ended March 2020.

In the third quarter of last fiscal year, cookie and bakery maker Britannia Industries recorded a 23.26% increase in consolidated net profit to Rs 369.88 crore in the third quarter ended December 2019. The company announced a consolidated net profit of Rs 300.07 crore in the same quarter of last financial year.

Operating income in the third quarter amounted to Rs 2,982.68 crore compared to Rs 2,842.44 crore in the period last year.

Axis Securities gave a target of Rs 3,114, an increase of 10% over a period of 6 to 9 months.

The brokerage house in a report said: “A resilient and diverse product portfolio that meets basic needs and also offers value-added products to its consumers guarantees. Britannia is isolated to some extent against coronaviruses such as a pandemic. In addition, the pressure on cash flow for regional / local players could open up opportunities for the company to gain market share and thus reduce the gap with the No.1 player.

Its strong market execution capabilities and focus on promoting premiumization (although it has been pushed an additional 1 to 2 quarters due to the coronavirus pandemic) are key growth drivers looking ahead. long term. “

By Aseem Thapliyal


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