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Britannia industries rally 78% since March, strong Quarter 1 growth Reported

Britannia Industries share price marked a new 52-week high record of Rs 3,746.35 per share on BSE with a profit of 2 percent on Friday, taking the total market cap to Rs 90,019.23 crore. Britannia Industries stock price has rallied a magnificent 78 percent within four months from Rs 2,100.5 level. In a new update, the company has announced that the board of directors of the company will meet in the month of July in order to consider and approve the April-June quarter results of the current fiscal. The research and brokerage company Nirmal Bang forecasts Britannia Industries to give a strong performance, which will be ahead of its peers.

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Nirmal Bang further said, “in the medium term, we remain positive on consumer staple companies, which are the market leaders with pricing power. These market leaders have shown celerity in on-ground execution. They have ample rural exposure and have higher direct reach in the traditional channel. Analysts also hope that government stimulus and a surge in MGNREGA allocation of Rs 40,000 crore will provide more job opportunities to the rural migrants.

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Around 11.10 AM, Britannia’s shares were trading in the green with an increase of 1.38 percent at Rs 3,725.70 per share, against a 0.58 percent decline in the benchmark S&P BSE Sensex.

Elara Capital in its research report stated that Britannia will see growth mainly led by the faster increase in the number of operations, broad distribution networks, and increased demand for products.

Meanwhile, brokerage firm Angel Broking has given an ‘accumulate’ rating to Britannia stock, with a target price of Rs 3,920 per share.

“Britannia Industries has an estimated distribution reach of 5.5 million outlets. It has lessened the gap with the number 1 player. The gap with the largest distributed brand now just stands at 0.8 million outlets only and this gap is expected to bridge soon, making Britannia the largest player over the medium to long term,” Angel Broking added.

Also Read: Sun Pharmaceuticals stock gained 1 per cent to hit day’s high of Rs 479 apiece on BSE today.