Yes we are talking about Britannia Industries. The company has posted good growth of 30.19% in its consolidated net profit for the year ended March 31, 2011 at Rs 134.34 crore against 103.18 crores in FY10. The company's net sales for the 12 months ended March 31, 2011 increased 22.05% at Rs 4,605.16 crore as against Rs 3,772.91 crore in 2009-10. The board has recommended a dividend of Rs. 6.50 per share.
The company has strong brand value which will drive its growth in future. At the CMP of Rs. 391 the stock is trading at a
PE multiple of 35 times which appears expensive based on current year multiples. But considering the high growth phase that the company is in, the stock is reasonably priced based on 2 years forward earnings. Hence long term investors with more than 2 years horizon can accumulate the stock on declines.
PE multiple of 35 times which appears expensive based on current year multiples. But considering the high growth phase that the company is in, the stock is reasonably priced based on 2 years forward earnings. Hence long term investors with more than 2 years horizon can accumulate the stock on declines.
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