Buy Britannia Industries, target Rs 2,900: Mazhar Mohammad

Mazhar Mohammad of Chartviewindia.in has given a buy call on Britannia Industries with a target price of Rs 2,900.

Shares of of Britannia Industries traded at Rs 2,676 around 1 pm on 13 May, 2019.

The analyst has set a two-week horizon for the stock to hit the target price and recommended to keep a stop loss at Rs 2,635.


Investment rationale:

"On the long term charts, this counter appears to have approached a critical support placed around Rs 2,620, from where it has registered a hammer kind of formation on weekly charts," said Mohammad.

He added that sustaining above Rs 2,620, this counter can head towards Rs 2,900 level.

"With the last three sessions of price action hinting at a short-term reversal, traders are advised to buy into this counter with a stop below Rs 2,635 on closing basis for a target of Rs 2,900," Mohammad said.

About the company:

Britannia Industries, incorporated in the year 1918, is a largecap company (having a market cap of Rs 64,611.98 crore), operating in food processing sector.
The key products or revenue segments of the company include bakery products which contributed Rs 9,276.17 crore to sales value (98.89 per cent of total sales) for the year ending 31-Mar-2018.

For the quarter ended 31-03-2019, the company reported a consolidated sales of Rs 2,764.01 crore, down 2.24 per cent from the last quarter Sales of Rs 2,827.40 crore and up 10.13 per cent from the last year same quarter Sales of Rs 2,509.87 crore.

The company reported net profit of Rs 294.57 crore in the latest quarter.

The company’s top management includes Dr.Ajai Puri, Dr.Ajay Shah, Dr.Y S P Thorat, Mr.A K Hirjee, Mr.Avijit Deb, Mr.Jeh N Wadia, Mr.Keki Dadiseth, Mr.Keki Elavia, Mr.Ness N Wadia, Mr.Nimesh N Kampani, Mr.Nusli N Wadia, Mr.Varun Berry, Mrs.Ranjana Kumar and Mrs.Tanya Arvind Dubash.

Britannia has B S R & Co. LLP as its auditors.

As on 31-03-2019, the company has a total of 24,03,18,294 outstanding shares.