Buy Britannia Industries, target price Rs 3800: Yes Securities

Yes Securities has buy call on Britannia Industries with a target price of Rs 3800. The current market price of Britannia Industries Ltd. is Rs 3632.2.

Britannia Industries Ltd., incorporated in the year 1918, is a Large Cap company (having a market cap of Rs 86993.20 Crore) operating in FMCG sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 3248.17 Crore, down -7.00 % from last quarter Total Income of Rs 3492.61 Crore and up 6.57 % from last year same quarter Total Income of Rs 3047.86 Crore. Company reported net profit after tax of Rs 452.62 Crore in latest quarter.


Investment Rationale
The stock has resumed an uptrend after breaking out of a consolidation phase. Further, it is on the verge of a breakout from a trendline resistance which also happens to be the 200-DMA. Moreover, the 20-DMA has made a bullish crossover with the 50-DMA, confirming strong uptrend. Technical indicator positive DI has crossed over the negative DI, suggesting higher levels.

Promoter/FII Holdings
Promoters held 50.6 per cent stake in the company as of June 30, 2020. FIIs held 14.7 per cent while DIIs held 12.7 per cent, and public and others 22.1 per cent.