Britannia Industries, Nestle India, ITC touch 52-week high on Monday’s trade ; check details

Shares of three fast-moving consumer goods (FMCG) companies, Britannia Industries Ltd, Nestle India Ltd, and ITC Ltd touch new 52-week on Monday's trade. Analysts claim that due to good Q4FY23 results, all three FMCG stocks continue to perform well.

Following FMCG major, Britannia's Q4FY23 earnings on Friday, shares of the company opened at ₹4,654.95 apiece on BSE. The stock touched an intraday high, 52-week high level of ₹4700.35 and low of ₹4618.55.

Britannia posted a 47% on year jump in its consolidated net profit for Q4FY23 on Friday.

The company stated that its consolidated net profit for FY23 increased by 52.3% year-on-year (YoY) to ₹2,322 crore. Revenue from operations climbed 15.3% year over year to ₹16,300.55 crore.

Earnings before interest, taxes, depreciation, and amortisation, or EBITDA,for Britannia came in at Rs801 crore while margins increased by 20%. The volume growth for the company was 1%.

Only volume growth fell short of street's forecasts, which were for it to be between 3% and 4%, coming in at 1% to 2%.

Britannia Q4: Net profit up 47.5% to ₹557 cr, revenue up 13%

According to analysts, all these three stocks are in uptrend. Britannia shares has given a fresh breakout, and they expect prices to move further in the near-term towards 4,900 level, while 4,550 is the support level for the stock.

Shares of Nestle India, on Monday's trade opened at intraday low level of ₹22,000.05 however picked up momentum to touch intraday, 52-week high level of ₹22,295.95 per share on BSE.

On April 25, the maggi instant noodle producer for the quarter ending in March, the company reported a net profit that increased by 24.7% year over year, or 737 crore, beating market expectations. A net sales total of 4,808 crore was recorded by the company. While domestic sales grew by 21.2%, the company's total sales increased by 21.3%.

Nestle profit up 25% YoY to ₹737 cr in Q1

As per trendlyne data, the stock price rose 26% and outperformed its sector by 13% in the past year.

Shares of ITC Ltd, is yet to report its Q4FY23 earnings. The stock opened at ₹431.20 and it touched a 52-week high and intraday high at ₹433.00 per share on the BSE.

As per trendlyne data, the stock price rose 64.5% and outperformed its sector by 10% in the past year. Further, the company emerged as the top performer so far in 2023 with a surge of 29.32%.

According to Vinit Bolinjkar, Head of Research, Ventura Securities, Nestle and Britannia have recently announced impressive revenue growth and profitability for Q4FY23, surpassing market expectations. This has been attributed to a strategic hike in product prices during Q3FY23, which led to increased revenue in Q4FY23. Additionally, a sharp decline in commodity prices has enabled these companies to reduce input costs and improve profitability. The market is expecting a similar performance from ITC.

“To further augment their revenue growth, these companies are now expanding their distribution networks in Tier III cities and rural areas. This strategic move is expected to yield positive results in the upcoming years. The stock market has taken note of these positive developments and has reacted accordingly, resulting in a rally for Nestle, Britannia, and ITC,” added Bolinjkar.

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