Friday, May 27, 2011

Ting Ting Tding

Britannia IndustriesYes we are talking about Britannia Industries. The company has posted good growth of 30.19% in its consolidated net profit for the year ended March 31, 2011 at Rs 134.34 crore against 103.18 crores in FY10. The company's net sales for the 12 months ended March 31, 2011 increased 22.05% at Rs 4,605.16 crore as against Rs 3,772.91 crore in 2009-10. The board has recommended a dividend of Rs. 6.50 per share.

The company has strong brand value which will drive its growth in future. At the CMP of Rs. 391 the stock is trading at a
PE multiple of 35 times which appears expensive based on current year multiples. But considering the high growth phase that the company is in, the stock is reasonably priced based on 2 years forward earnings. Hence long term investors with more than 2 years horizon can accumulate the stock on declines.

52 week high low for the stock is Rs 535 / Rs 324.

Update as on 14th Aug 2015: The stock is up more than 8 times since the recommended price of 391 per share and is one of the best wealth creators on dalal street. 

Britannia Industries Stock Price Performance

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