Shares of Britannia Industries Ltd rose nearly 2% after the stock turned ex-dividend today. The snacks maker had announced an interim dividend of Rs 72 per share or 7,200% payout compared to the face value of Re 1 each for the large cap share in the last fiscal. The FMCG firm will pay dividend to eligible shareholders on May 4. The dividend rate is calculated as a percentage of the face value of each share. The company paid a dividend of Rs 83 per share in August 2020, which is the highest in its history of going public.
Britannia Industries stock gained up to 1.89% to Rs 4,349 today against the previous close of Rs 4268.40 on BSE. The stock opened lower Rs 4222 on BSE. Market cap of the firm rose to Rs 1.02 lakh crore on BSE. In a year, the stock has gained 27.85 per cent and fallen 0.62 per cent in 2023.
In terms of technicals, the relative strength index (RSI) of the stock stands at 44.7, signaling it's trading neither in the overbought zone nor in the oversold zone. Britannia Industries shares have a beta of 0.5, indicating very low volatility in a year. The large-cap stock is trading higher than the 200 day moving averages but lower than the 5 day, 20 day, 50 day and 100 day moving averages.
Abhijeet from Tips2trades said, "Britannia Industries has a strong resistance at Rs 4,374 on the Daily charts. A close above this resistance could be very bullish and lead to targets of Rs 4,530-4,660. Support will be at Rs 4,222."
Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has a buy call on the FMCG stock with a target price of Rs 4,486-4,610 . Stop loss can be fixed at Rs 4,156. “Britannia Industries is showing higher relative strength, which indicates that the stock is outperforming the benchmark indices. The momentum indicator viz RSI has made a double bottom at the 35 reading and is on the verge to break the 50 reading. Even, the MACD Histogram indicator has turned positive. This suggests that momentum is likely to continue on the upside. Hence, one can buy at current prices with a stop loss of Rs 4,156 for a target of Rs 4,486-4,610 levels in the next couple of weeks,” said Vasudeo.
Britannia Industries reported a consolidated net profit of Rs 932.39 crore for the December quarter, up 151.19 percent from Rs 371.18 crore in the corresponding quarter of the previous year. This included one-time gain of Rs 375.60 crore. Excluding the one-time gain, profit rose 50 per cent year on year (YoY). Revenue from operations came in at Rs 4,196.80 crore, up 17.39 percent from Rs 3,574.98 crore in the corresponding quarter last year.
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