Analysts see an upside for Britannia Ind, stock has given a bullish breakout on the weekly chart

With a market valuation of 1,01,062.32 Cr., Britannia Industries Ltd. is a large-cap business that operates in the fast-moving consumer goods industry. The corporation is active all throughout India, and its products are sold in more than 5 million retail establishments. Britannia is one of the most trustworthy food companies, producing well-known brands in India such as Good Day, Tiger, NutriChoice, Milk Bikis, and Marie Gold. The product line offered by Britannia consists of biscuits, bread, cakes, rusk, and dairy items including cheese, beverages, milk, and yoghurt. A target price of Rs. 4,700 has been determined today by the research experts of Bonanza Portfolio Ltd. This figure represents an upside potential of 12% from the current market price.

The research analyst Ms Shreya Hanchate and Mr. Vishal Vasant Wagh, Technical Research Head of Bonanza Portfolio Ltd has said in a note that “On the weekly chart, the stock has given a bullish breakout of the Triangle pattern with a spurt volume which indicates beginning of the uptrend. On a daily chart, Britannia has been moving in higher high and higher lows formation which indicates the trend is positive. Stock is trading above its 21, 50 & 100- day exponential moving averages on weekly & daily time frames, which is positive for the stock for short to medium term.”

They have further claimed that “An oscillator stochastic is also supportive for the long position with positive crossover. Furthermore, the RSI indicator has also sustained above 65 levels which indicates bullish strength in the near term. So based on above technical structure one can initiate a long position in BRITANNIA at CMP 4,200 or a fall in the price till 4,140 can be used as buying opportunity for the upside target of 4,700. However, Bullish view will be negated if Britannia closes below the support level of 3,925.”

“The company has posted strong numbers in the recent quarter with a Revenue/PAT growth of 22%/28% YoY respectively, and Operating Profits witnessing healthy double-digit growth, driven by topline boost & profitability measures adopted. (Operating Profits grew at 30% YoY and OPM improved by +290 Bps QoQ),” they said.

Britannia Industries has announced a dividend of 5650.00%, or 56.5 per share, for the fiscal year that ended on March 31, 2022, or FY22. The dividend yield at the current share price of 4,204.95 is 1.34%. The shares of Britannia Industries Ltd closed today at 4,204.95 apiece, up by 1.20% from the previous close of 4,155.15. In comparison to the 20-Day average volume of 458,684 shares, the stock’s trading session had a total volume of 231,515 shares. The stock has appreciated 16.24% YTD so far in 2022.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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