7200% Dividend Paid In FY23: This High Dividend Paying FMCG Stock Is Seen To Give 12% Returns Ahead

Britannia Industries is a familiar brand in the FMCG industry. The large-cap stock currently holds over Rs 1.09 lakh crore of market value on BSE. In a year, Britannia shares have given 24% returns, while its 5-yearly performance is an upside of 34%. But this FMCG stock's all-time gains are by a breathtaking 33,531% since early-1996. One of the key features is that Britannia is among the dividend king stocks, rewarding investors with huge dividend payouts in a respective financial year. This high dividend-paying stock is among the technical picks of Vaishali Parekh, Vice President - Technical Research of Prabhudas Lilladher.

Parekh has recommended to accumulate Britannia shares for a target price of Rs 5,100 per share. This indicates a rise of at least 12.4% ahead compared to the current market price.

On Friday, Britannia shares ended at Rs 4535.65 apiece, up by Rs 32.80 or 0.73%. The was near its day's high of Rs 4552.80 apiece.

At the closing price, the market value of the company stood at Rs 1,09,249.43 crore.

Britannia has journeyed from as low as Rs 13.5 per share on BSE in early-1996, to near Rs 5,000 mark as well.

The stock's latest 52-week high and low is Rs 5,268.55 apiece and Rs 3,555.00 apiece respectively. From its 1-year low, the stock is up by nearly 28% at present.

Giving rationale as to why Britannia is among technical picks, Parekh's note said, "The stock has witnessed a decent erosion from the 5200 zone retracing almost 78.60% of the previous rally and has shown signs of bottoming out near the significant 200 periods daily MA at 4500 levels and indicating a trend reversal to anticipate for further rise."

She highlighted that the RSI is hovering near the highly oversold zone and indicating a trend reversal to signal a buy with strength indicated for further upward movement in the coming days.

"With the chart looking very attractive, we suggest buying and accumulating this stock for an upside target of 5100 keeping the stop loss of 4350," Parekh added.

In the June 2023 quarter, the FMCG player's consolidated sales were at Rs 3,970 crore, rising by 9% YoY, while net profit jumped by a whopping 36% YoY to Rs 458 crore. Operating profit zoomed by 37% YoY to Rs 618 crore.

During the Q1 results, Varun Berry, Executive Vice Chairman & Managing Director said, "We have progressed well in our journey of building technologically superior factories. Our new Greenfields in Tamil Nadu
& Uttar Pradesh were efficiently scaled up. With capacity and capability enhancements planned in Ranjangaon Food Park, we are well poised to further extract productivity and enhance competitiveness in these growing markets."

Britannia has a robust track record of paying hefty dividends to its shareholders. In FY23, the company paid a total dividend of 7200% aggregating to Rs 72 per share. This is over 27.4% up from a dividend of 5650% to Rs 56.50 per share paid in FY22.

According to Trendlyne data, Britannia has declared at least 25 dividends since July 2, 2001.

At the current share price of Rs 4535.05, the company's dividend yield comes to around 1.6%.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, znor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.