Britannia 6100 CE Recommended above 109, Sl 96, Trgt 133.

Britannia has consistently shown strong financial results. In Q1 FY2024, the company reported a 36% year-over-year growth in consolidated net profit, driven by a 12% increase in revenue. This strong performance has been fueled by higher demand for its packaged food products, which are resilient in both urban and rural markets.

Expansion Plans: Britannia has been expanding beyond its core biscuit business into adjacent categories like dairy and bakery, which are expected to support long-term growth. The company has made significant investments in expanding its dairy portfolio, such as butter, cheese, and other value-added products, which could help diversify revenue streams. Britannia’s distribution network, especially in rural India, continues to be a key growth driver. With increased penetration into rural areas, the company has been able to capitalize on rising consumption patterns outside urban centers. This expansion is expected to further bolster its topline growth.

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Britannia Inds has a PE ratio of 16which is high and comparatively overvalued.
• Share Price: – The current share price of Britannia Inds is Rs5,703.35. One can use valuation calculators of ticker to know if Britannia Inds share price is undervalued or overvalued.
• Return on Assets (ROA): – Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Britannia Inds has an ROA of 60% which is a good sign for future performance. (higher values are always desirable)
• Current ratio: – The current ratio measures a company’s ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company can be stable to unexpected bumps in business and economy. Britannia Inds has a Current ratio of 17.
• Return on equity: – ROE measures the ability of a firm to generate profits from its shareholders’ investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Britannia Inds has an ROE of 07% .(higher is better)
• Debt to equity ratio: – It is a good metric to check out the capital structure along with its performance. Britannia Inds has a Debt to Equity ratio of 58which means that the company has a low proportion of debt in its capital.
• Sales growth: – Britannia Inds has reported revenue growth of 63% which is poor about its growth and performance. 
• Operating Margin: – This will tell you about the operational efficiency of the company. The operating margin of Britannia Inds for the current financial year is 97%.
• Dividend Yield: – It tells us how much dividend we will receive about the price of the stock. The current year dividend for Britannia Inds is Rs50 and the yield is 1.29 %.
• Earnings Per Share: – It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Britannia Inds is Rs 89. The higher the EPS, the better it is for investors. 

The stock opened with positive momentum and closed above yesterday’s high and hence recommended the ATM Call option to capture further short momentum. Risk-reward was lucrative.