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FMCG major Britannia shares hit fresh 52-week high. Do you own them?

Britannia is among dividend king stocks and has held a good track record of paying hefty dividend equity shares to its investors. Premium
Britannia is among dividend king stocks and has held a good track record of paying hefty dividend equity shares to its investors.

  • In the second quarter of FY23, Britannia posted a consolidated net profit of 493.28 crore attributable to owners, compared to 384.22 crore in Q2FY22. Revenue from operations came in at 4,337.59 crore versus 3,553.68 crore in Q2 of FY22.

Wadia Group-backed Britannia Industries hit a new 52-week high on Tuesday tracking broad-based buying in FMCG stocks. Britannia climbed more than 2% on Dala Street and even crossed the 4,300 mark. Overall, FMCG stocks witnessed strong buying with the index on BSE and NSE soaring by around 2% each. Britannia is among dividend king stocks and has held a good track record of paying hefty dividend equity shares to its investors. Year-to-date, Britannia shares have jumped by nearly 19%.

At around 12.01 pm, Britannia shares were trading at 4,267.95 apiece up by 55.80 or 1.32% on BSE. At the current price level, the company's market cap is around 1,02,801.38 crore.

In the early deals, Britannia shares hit a new 52-week high of 4,300.80 apiece.

In a year, Britannia shares have advanced by nearly 22% on Dalal Street. The stock was around the 3,527 level on November 29 last year.

However, Britannia shares have skyrocketed by at least 41% in over nine months, compared to its 52-week low of 3,050 apiece that was recorded on March 8, 2022.

In the second quarter of FY23, Britannia posted a consolidated net profit of 493.28 crore attributable to owners, compared to 384.22 crore in Q2FY22. Revenue from operations came in at 4,337.59 crore versus 3,553.68 crore in Q2 of FY22.

In the financial results filing, Varun Berry, Managing Director, earlier said, “We have witnessed positive growth momentum over the last few months. Our Go-to-market strategy & increase in distribution reach have converged to deliver a robust topline growth of 22% YoY & 19% QoQ, aided by a mid-single-digit volume growth, as we record our highest quarterly revenue."

Further, Berry said, "We continue to have aggressive market share gains, consistently over the past 38 quarters & register a 15-year high, which is a testimony of our Brand strength & team’s execution capability. Our direct distribution jumped to 26 lakhs outlets, with an addition of 4 lakhs outlets in the last 6 months. We continue to make strides in our Rural journey and we now have appointed ~28,000 Rural Preferred Dealers, which has led to consistent market share gains."

In their post-Q2 report, Centrum said, “Q2FY23 print indicate resilient performance ahead as the management reiterated its strategic growth initiatives will hold it on a path of sustainable & profitable share gain in the future also. We believe impact of higher consumer promotions (extra grammage in select SKUs) resulted in higher revenues, yet it balanced its trade promotion to impact gross margins positively."

Centrum's note added, "We introduce FY25E earnings and retain BUY, with a revised DCF‐based TP Rs4,575 (implying 46.0x avg. FY24E/FY25E EPS). Risks to our call include rising input costs, abrupt competition, and unsecured loans to promoter group."

In the fiscal ending March 31, 2022, Britannia paid a massive dividend of 5,650% aggregating to 56.5 per share.

At the current market price, Britannia's dividend yield is over 1.3%.

 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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