Britannia Industries, one of India’s leading food companies, saw its stock surge as shares turned ex-dividend for the company’s interim dividend payout of 7,200%. The announcement of the dividend payout was made earlier this month, leading to a boost in the stock’s price.
The interim dividend payout of 7,200% translates to a dividend of Rs. 72 per share, and this is the first time the company has declared such a high dividend. The ex-dividend date for the payout was April 12, and the record date has been set as April 13. Shareholders who held Britannia Industries shares as of April 12 will be eligible for the dividend payout.
The stock gained 1.66% on April 12 and closed at Rs. 3,776.45, up by Rs. 61.90 from the previous day’s close. The market capitalization of the company also rose to Rs. 1,50,227.69 crore. The stock has been performing well in recent times, with a year-to-date gain of over 13% and a three-month gain of over 16%. Analysts are expecting the stock to perform well in the coming days, with a target price of Rs. 4,000-4,200 for it in the near future. Overall market sentiment is also positive for this company as investors continue to be bullish on its prospects. The company has recently announced new initiatives which could further boost its performance going forward and may even reward investors with higher returns in the future. Therefore, it is a good time to invest in this stock and get in on its potential upside.
Investors should also keep an eye out for any market-moving news or announcements from the company as they could have an effect on its share price. Additionally, monitoring the performance of its peers and competitors should also be done in order to gauge the direction of the stock.
Britannia Industries has a strong brand presence in India and is known for its biscuits, cakes, and other baked goods. The company’s revenue for the quarter ended December 31, 2021, was Rs. 3,402.72 crore, up by 7.1% from the same period in the previous year. The company’s profit for the quarter was Rs. 458.08 crore, up by 15.7% from the same period in the previous year.
The company’s strong financial performance has led to the decision to pay out a high dividend, which is a positive sign for shareholders. The company has been focusing on expanding its product portfolio and strengthening its distribution network, which has helped it maintain its strong position in the Indian market.
Analysts are optimistic about the future of Britannia Industries, and many believe that the stock has the potential to continue its upward trajectory. However, there are also concerns about the impact of rising input costs and inflation on the company’s profitability.
In a recent note to clients, brokerage firm HDFC Securities said that the outlook for Britannia Industries remains positive, despite the challenges posed by rising input costs. The brokerage firm also raised its target price for the stock from Rs. 3,800 to Rs. 4,200. The firm said that Britannia has maintained its market share and profitability despite the competitive environment. It is expected to continue to benefit from strong brand equity, product innovation, and efficient supply chain management.
Overall, Britannia Industries’ strong financial performance and the announcement of the high dividend payout have led to a positive sentiment among investors. The stock’s performance in the coming days will depend on various factors such as market conditions, input costs, and the company’s future plans for expansion and growth. However, investors can be sure that the company will continue to deliver solid results and reward its shareholders with dividends. As a part of Britannia Industries’ strategy going forward, they plan to strengthen their presence in international markets and expand their portfolio by introducing a range of innovative products.
