Analysts see an advantage for Britannia Ind, shares have broken higher on the weekly chart

With a market valuation of $1,01,062.32 Cr., Britannia Industries Ltd. is a large-cap company operating in the fast-moving consumer goods industry. The corporation is active throughout India and its products are sold in more than 5 million retail outlets. Britannia is one of the most trusted food companies and produces well-known brands in India such as Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold. The product line offered by Britannia consists of cookies, bread, cakes, biscuits and dairy products such as cheese, drinks, milk and yogurt. A target price of Rs. 4,700 has been determined today by the research experts at Bonanza Portfolio Ltd. This figure represents upside potential of 12% from the current market price.

Research analyst Ms Shreya Hanchate and Mr Vishal Vasant Wagh, Director of Technical Research at Bonanza Portfolio Ltd, said in a note that “on the weekly chart, the stock has given a bullish breakout of the triangle pattern with a Accelerating volume indicating the beginning of the uptrend. On a daily chart, Britannia has been moving in a higher-lower-high formation, indicating that the trend is positive. Stocks are trading above their 21, 50, and 100-day exponential moving averages on weekly and daily time frames, which is positive for stocks in the short to medium term.”

Furthermore, they have stated that “a stochastic oscillator is also compatible with being long with a positive crossover. Furthermore, the RSI indicator has also been holding above the 65 levels, indicating bullish strength in the near term. So, based on the above technical structure, a long position on BRITANNIA can be initiated on CMP $4,200 or a drop in price to $4,140 can be used as a buying opportunity for the bullish target of $4,700. However, the bullish view will be nullified if Britannia closes below the support level of $3.925″.

“The company has posted strong numbers in the last quarter with Revenue/PAT growth of 22%/28% YoY respectively, and operating profit has witnessed healthy double-digit growth, driven by measures of momentum and profitability. taken. (Operating Income grew 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 ending March 31, 2022 or FY22. The dividend yield at the current price of the shares of $4,204.95 is 1.34%. Britannia Industries Ltd shares closed today at $4,204.95 each, 1.20% more than the previous closing of $4,155.15. Compared to the 20-day average volume of 458,684 shares, the stock trading session had total volume of 231,515 shares. The stock has appreciated 16.24% year to date in 2022.

Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of the Mint. We advise investors to consult with certified experts before making any investment decision.

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