Buy Britannia Industries, target price Rs 3,395: Dharmesh Shah

Dharmesh Shah of ICICI Direct has a buy call on Britannia Industries Ltd. with a target price of Rs 3395. The current price of Britannia Industries Ltd. is Rs 3165.7 Time period given by the analyst is Intra Day when Britannia Industries Ltd. price can reach defined target. . Dharmesh Shah recommended to keep a stoploss at Rs 3030.

Britannia Industries Ltd., incorporated in 1918, has a market cap of Rs 74774.82 crore, operating in FMCG sector.

Investment Rationale


Bullish Flag continuation pattern on the daily chart indicates resumptionof momentum.

Fiancials

For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 2935.98 crore, down -2.88 per cent from last quarter sales of Rs 3022.91 crore and up 3.84 per cent from last year same quarter sales of Rs 2827.40 crore. The company reported net profit after tax of Rs 369.58 crore in the latest quarter.

Promoter/FII Holdings

Promoters held 50.63 per cent stake in the company as of March 31, 2020 while FIIs held 14.72 per cent, DIIs 13.37 per cent and public and others 21.28 per cent.