Today we are analyzing the qualitative part of Britannia Industries, the Indian biscuit major. I have selected Britannia Industries as the first to this series by considering their monopolistic business position in India and operating efficiency to keep their head up all the time. Whether the economy going through inflation or deflation stages, business of Britannia will be intact and also growing consistently by the support of above qualities. If you go through any business news paper, you can understand the innovations Britannia Industries taking to manage their leadership position in the market intact. Of course, there are other companies operating to the same segment but, Britannia made it difficult to beat them in India.
To identify the popularity of Britannia products, just move to the next shop, anywhere in India, whether it is rural, remote or in a city, you will be able to find their products there. Yes, the network of Britannia enjoying similar or more efficient than India Post. They never failed to mark their presence in each and every corner of India and make people aware about their products time to time, through excellent advertisement ventures.
Taking the debt part of this company, investors are in safe side because, Britannia Industries
Britannia Industries have well dedicated management team to efficiently lead the company always to the next level. Recently introduced tiny biscuit packs are the best example on their timely, innovative approach by considering the possible market changes. In other words, they better know the nerve of Indian market. Such efficiency certainly helps Britannia to hold their leadership positions in the market for long term.
Leading by Britannia's ever top brand TIGER, company enjoys number of well known biscuits brands for Indian public.
They also have various monopolistic brands like 50-50, Good day, Bourbon, Marie Gold to spice up their product portfolio. The biggest honor to Britannia from Indian public is, It is difficult find a person in India without having tasted any of the Britannia products. This honor supporting Britannia's monopolistic position in Indian market and thus it meets one of the most required value investing criteria of having any monopolistic brands.
Their product portfolio also includes milky bar, NutriChoice grain products, NutriChoice Digestive Biscuit, Treat Fruit Rollz, New Britannia Milk Bikis, Time Pass, Little Hearts. They have considerable presence to the milk products, ice scream and snacks segments. Through their overseas network with all the middle east countries, they are able to export their products to these countries and thus adding revenue from overseas operations.
As one of the India's biggest, most favorite brand for any type of people, Britannia became one of the most respected company with more than Rs. 2000 crore revenue. Investing on Britannia Industries at the right time, help investors to create wealth over long run. Compare with its present EPS of 75.51 with today's NSE price Rs. 1,643.00 per share, buying Britannia stock giving an initial rate of return of 4.3% and it shows the price of Britannia stock is high. An investor required to wait until the price reach to the level of Rs. 1250 - 1300, to enjoy 6% initial rate of return when buying. You are required to re-calculate the initial rate of return after declaring their annual result for previous year.
No doubt, Britannia can be a best candidate to your portfolio. As mentioned above, company meets all the qualitative criteria for value investing. Investors required to wait and buy the stocks when it reach to the right level to buy.
having debt less than one year net profit of the company. It indicated, company not even required to spend its one year net profit to pay off all its debts to be a zero debt company. If you look into the sales part, you can feel tremendous year to year sales growth. Net profit, per share earning and book value also shows strong year to year growth to support meeting major value investing criteria. Through its defensive nature and consistent dividend history, company being more and more attractive for investors from India or abroad.
To identify the popularity of Britannia products, just move to the next shop, anywhere in India, whether it is rural, remote or in a city, you will be able to find their products there. Yes, the network of Britannia enjoying similar or more efficient than India Post. They never failed to mark their presence in each and every corner of India and make people aware about their products time to time, through excellent advertisement ventures.
Taking the debt part of this company, investors are in safe side because, Britannia Industries
Britannia Industries have well dedicated management team to efficiently lead the company always to the next level. Recently introduced tiny biscuit packs are the best example on their timely, innovative approach by considering the possible market changes. In other words, they better know the nerve of Indian market. Such efficiency certainly helps Britannia to hold their leadership positions in the market for long term.
Leading by Britannia's ever top brand TIGER, company enjoys number of well known biscuits brands for Indian public.
They also have various monopolistic brands like 50-50, Good day, Bourbon, Marie Gold to spice up their product portfolio. The biggest honor to Britannia from Indian public is, It is difficult find a person in India without having tasted any of the Britannia products. This honor supporting Britannia's monopolistic position in Indian market and thus it meets one of the most required value investing criteria of having any monopolistic brands.
Their product portfolio also includes milky bar, NutriChoice grain products, NutriChoice Digestive Biscuit, Treat Fruit Rollz, New Britannia Milk Bikis, Time Pass, Little Hearts. They have considerable presence to the milk products, ice scream and snacks segments. Through their overseas network with all the middle east countries, they are able to export their products to these countries and thus adding revenue from overseas operations.
As one of the India's biggest, most favorite brand for any type of people, Britannia became one of the most respected company with more than Rs. 2000 crore revenue. Investing on Britannia Industries at the right time, help investors to create wealth over long run. Compare with its present EPS of 75.51 with today's NSE price Rs. 1,643.00 per share, buying Britannia stock giving an initial rate of return of 4.3% and it shows the price of Britannia stock is high. An investor required to wait until the price reach to the level of Rs. 1250 - 1300, to enjoy 6% initial rate of return when buying. You are required to re-calculate the initial rate of return after declaring their annual result for previous year.
No doubt, Britannia can be a best candidate to your portfolio. As mentioned above, company meets all the qualitative criteria for value investing. Investors required to wait and buy the stocks when it reach to the right level to buy.
having debt less than one year net profit of the company. It indicated, company not even required to spend its one year net profit to pay off all its debts to be a zero debt company. If you look into the sales part, you can feel tremendous year to year sales growth. Net profit, per share earning and book value also shows strong year to year growth to support meeting major value investing criteria. Through its defensive nature and consistent dividend history, company being more and more attractive for investors from India or abroad.
No comments:
Post a Comment