Stocks will perform in Falling Market - Britannia Industries Limited

Britannia Industries Limited is a major player in the Indian Foods market with leadership position in Bakery category. Its brand portfolio includes Tiger, Marie Gold, Good Day, 50:50 and Treat. The Company was born in 21st March of the year 1918 as a public limited company. The Companys plants are situated in Kolkata, Delhi, Chennai, Mumbai and Uttarakhand. In 1921, it became the first company east of the Suez Canal to use imported gas ovens. Britannias business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As a result, during the tragic World War II, the Government reposed its trust in Britannia by contracting it to supply large quantities of service biscuits to the armed forces. 

  • The company was rated as the No 1 Most Trusted Food Brand in a survey conducted by AC Nielsen ORGO-MARG and published in Economic Times in the year 2007. 
  • BIL was ranked 27th place in the list of Indias Fastest Growing Large Companies by Business Today, Special on June of the year 2008. 
  • Britannia launched Iron fortified Tiger Banana biscuits, Good Day Classic Cookies, Low Fat Dahi and renovated MarieGold during the period of 2008. 
  • Forbes Global Ranking was rated the company during the year 2000, Britannia among Top 300 small companies. In the same year, the company had launched Britannia Milkman Butter, a product under the Milkman brand. 

Fundamental Analysis 
Britannia Industries is a major player in the Indian Foods market with leadership position in Bakery category. It offers bakery products such as biscuit bread cake and rusk as well as dairy products including milk butter cheese ghee dahimilkbased ready to drink beverages and dairy whiteners. Britannia Industries Limited also manufactures and sells gourmet bakery solutions comprising specialty breads cakes pastries and cookies. It primarily offers its solutions under the Good Day Tiger NutriChoice Milk Bikis 5050 and Marie Gold brands. Britannia Industries Limited was founded in 1892 and is based in Bengaluru India.Beta of the stock for one month range is 0.26. 

  • Company is virtually debt free. 
  • Company has good consistent profit growth of 38.15% over 5 years 
  • Company has a good return on equity (ROE) track record: 3 Years ROE 42.74% 
  • Company has been maintaining a healthy dividend payout of 31.21% 
  • Company has P/E ratio of 63.49 Which is less than industry P/E of 64.75 

Technical Analysis 
Britannia Industries is currently in a strong bullish trend on technical charts. The stock gained nearly 70 percent in 2017 from the lows of 2830 to high 4926. The stock rallied in the same way when it started in June 2014 continued unstoppable uptrend continuously till 14 months. And currently it is again in the continuous 11th month of uptrend and there are many more to come backed with strong fundamentals of the company. It is currently trading in a channel line formation on weekly chart started from May 2017. 

  • The stock has Channel line support on weekly and Daily chart 
  • It extends uptrend with the support of 9 day EMA which plays a role of strong support 
  • ADX also signals strength in an uptrend and currently above 57 
  • In the last week it has given volume break out of the last 5 year 
  • The stock consolidates in a tight range on daily chart and above 4885 it may blast to new highs 
  • The channel line resistance would be around 5150 to 5200 and expected to touch in the next couple of weeks 

Buy Britannia December futures between 4740-4800 for the target of 5050-5200 with stop loss below 4590, hold till expiry for huge returns 

Supports and Resistance (Monthly)

  • Resistance 1- 4885 Support 1- 4690 
  • Resistance 2- 5000 Support 2- 4590 
  • Resistance 3- 5170 Support 3- 4420 

Britannia Weekly CHART