Bluechip stock Britannia Industries to turn ex-dividend tomorrow for 7200% interim dividend payout

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Britannia Industries is a blue chip company with a market capitalization of 102,882 Cr as of today’s close. It is one of the biggest food companies in the United States. It operates in more than 80 countries and does a lot of business in the dairy, bakery, and snacking areas. The stock will stop paying dividends tomorrow, even though it has a 7200% dividend payout for FY 2022–2023. Since 2021, this dividend payment by Britannia Industries is the highest in the last two years.

The company’s board of directors has announced an interim dividend of Rs. 72 per share with a face value of Re. 1 for the fiscal year 2022–203. For the same reason, the record date has been set for Thursday, April 13, 2023, to figure out which shareholders are eligible for an interim dividend.

Britannia Industries has said that it will pay an equity dividend of 56.5 per share for the fiscal year that ends in March 2022. This is based on the face value of 1, which is 1. At the current share price of 4,282, this gives a dividend yield of 1.32%. In the past five years, the company has done a good job of paying dividends. Trendlyne data show that Britannia Industries Ltd. has paid out 25 dividends since July 2, 2001.

Britannia Industries shares closed on the NSE today at 4,282 each, up 0.11% from yesterday’s close of 4,277.35. The stock’s 52-week high was 4,669.20 on February 10, 2023, and its 52-week low was 3,132.05 on (25-Apr-2022).

Rahul Ghose, Founder and CEO of Hedged, an algorithm-powered advisory platform, said about the stock’s technical outlook, “The Brittania stock has been struggling to close above its 20-day exponential moving average (EMA) for a while now. The stock has been going down for the last few months, which has brought its valuation up to a fair level. The company also has a high ROCE. Even though the prices are reasonable, the stock is not yet a buy from a technical point of view. This stock can only be bought when it goes above $4375, where an inverse head-and-shoulders pattern is confirmed. A break above this level would be a bullish sign because it would mean that some key moving averages would close above them in the short term. Once triggered, investors can hold this stock for the long term with a stop loss at $4,150.”

Kaustubh Pawaskar, DVP Fundamental Research at Sharekhan by BNP Paribas, said this about the stock’s fundamental outlook: “Britannia has consistently grown its lead over the No. 2 player over the past six years, and now it wants to make that lead even bigger.” We expect Britannia’s core biscuit category to grow faster than the rest of the industry in the medium term, thanks to continued gains in market share, the launch of new products, and more interest in new channels, such as e-commerce. The company is putting a lot of money into the dairy business and putting out new products. This, along with scaling up the sales of the categories next to it and finding ways to save money, would help Britannia earn 20% more over FY2022-FY2025E. Inflation in the prices of its inputs, like wheat, continues to be a threat to its growth in earnings in the near future. The price of its stock has stayed the same for the past three months. From a long-term point of view, we suggest that you buy on Britannia.”

Source: Team CurrencyVeda