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    Momentumisers: Here’s why Britannia is surging

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    Momentumisers: Here’s why Britannia is surging

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    Britannia Industries was up 9 percent last week and has been an outperformer in the month of August. This outperformance comes after a long spate of underperformance; in the last 12 months, the stock has done virtually nothing and it’s still 2 percent away from its 52-week high

    Britannia Industries was up 9 percent last week and has been an outperformer in the month of August.
    It’s up 14 percent compared to the FMCG index, which is up 7 percent. So, it has outperformed the sector by a factor of 2 and it has outperformed the Nifty by a factor of 3 because the Nifty is up 4.5 percent this month. This outperformance comes after a long spate of underperformance; in the last 12 months, the stock has done virtually nothing and it’s still 2 percent away from its 52-week high, so while most of the FMCG names hit fresh record highs on Friday, Britannia is still about 2-2.5 percent away from that.
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    The high base is behind the company; same time last year, there was a big base because a lot of people were consuming biscuits indoors, now that’s behind the company and with the COVID-19 problem being behind, the focus now shifts back to innovations as against the essentials which the company was producing during the COVID wave and at 44 times, not particularly cheap but definitely cheaper as against the sector because a lot of its peers on the Nifty trade are closer to 50, some even 70 times FY23 earnings.
    Watch the accompanying video of CNBC-TV18’s Mangalam Maloo for more details.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
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