Blue Chip Stock To Buy: Dividend of Rs 73.50 Ahead; 5th Aug - Record Date; Buy Britannia Industries For TP?

One of India's top producers of food products and a household name, Britannia Industries was founded in Kolkata in 1892. The firm operates in more than 80 countries worldwide, with its primary operations being in the bakery, dairy, and related food areas. This firm has over 130 years of experience producing FMCG products.

Britannia Industries Dividend

"Pursuant to the Dividend Distribution Policy of the Company, the Board of Directors at their Meeting held on 3 May 2024, has recommended a final dividend @7350% i.e., Rs 73.50/- per Equity Share of face value of Rs 1/- each fully paid up for FY 2023-24. The total dividend payout for FY 2023-24 will be Rs 1,770.38 Crores. The final dividend is subject to the approval of Members at the ensuing 105th Annual General Meeting ('AGM') of the Company. The Dividend, if declared, will be paid to the Members holding equity shares as on record date i.e., 5 August 2024. The same will be paid within statutory timelines after deduction of tax at source," said the company in a regulatory filing.

Britannia Industries Q1 Results

On August 2, Britannia Industries revealed a consolidated net profit for the June quarter of Rs 524 crore, up 14.5 percent from Rs 458 crore in the same period of the previous fiscal year. According to a regulatory filing, the company's sales jumped by 4% to Rs 4,130 crore in Q1 FY25 from Rs 4,010.70 crore in Q1FY24.

Varun Berry, Vice Chairman & Managing Director, said, "We come out of a challenging financial year that witnessed consumption slowdown, particularly in Rural India. Our performance this quarter reflects the agile approach to a dynamic market environment and diligent market practices. We delivered a modest revenue growth of 4% during the quarter, driven by high single-digit volume growth, and improved operating margins over last year. Our market share progressed well as an outcome of sustained investments in Brands, Product excellence, and Innovation."

"We continue to make positive strides in Rural as we expand distribution footprint and enhance product offerings to align with regional preferences, and well positioned to benefit from the consumption growth in Rural. As a result, rural market share grew at a faster clip than Urban. We are actively leveraging the rapidly growing Modern Trade and E-commerce channels, both growing handsomely compared to previous year. Additionally, we introduced the Pure Magic Stars and Golmaal variant during the quarter, which have contributed to heightened consumer excitement and strengthened our brand franchisee," stated Varun Berry.

He further added that, "On Cost & Profitability front, we remain vigilant of the commodity price fluctuations & evolving geopolitical landscape. Our Cost Efficiency Program continues to yield operational savings, ensuring robust operating margins. We are committed to investing in capability enhancement and brand development while maintaining price competitiveness with the clear objective of driving market share and sustaining profits. We reaffirm our commitment to our ESG framework of People, Growth, Governance and Resources and shall continue to focus on our initiatives to build a Sustainable and Profitable business."

Britannia Industries Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "The current trading price of BRITANNIA is Rs 5716. The stock has recently profit booking from higher levels by forming higher high higher low pattern on the daily chart with a significant increase in trading volume, indicating a potential breakout. If the price manages to close above the Rs 6000 level, it may have the potential to reach short-term targets of Rs 6600. On the other hand, immediate support levels are located at Rs 5550. These levels can be considered as opportunities to buy on dips. The Relative Strength Index (RSI) currently stands at 50 and is trending upward, indicating increasing buying momentum."

"To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 5380. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and the current market conditions, BRITANNIA appears to present an appealing buying opportunity for those aiming for a Rs 6600 price target, provided that appropriate risk management measures are in place," the analyst further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.