Britannia and ITC top picks in the FMCG sector: Ajay Bodke

In a chat with ET Now, Ajay Bodke, Head-Investment Strategist & Advisory, Prabhudas Lilladher shares his view on Britannia

ET Now: At Prabhudas Lilladher you track Britannia with a magnifying glass. So based on those numbers, what is the way forward for Britannia which of late has been a marked outperformer?

Ajay Bodke: We have been positive on Britannia for last three months and we see the positive story continuing in the medium term. Our positive stance essentially was based on the fact that the volume growth has been extremely strong. We have seen the pricing power coming back to the company.

The value added products that the company has been launching have been contributing a higher share of the total revenues and the costs they have been able to keep them under good control. Hence they have seen a very strong buoyancy in the margins.

We see no reason why the same should not continue in the short to medium term. FMCG is a sector we continue to remain very positive and Britannia and ITC remain our top picks in the FMCG sector.