Britannia Industries (Code : 500825)
Britannia Industries manufactures biscuits, bread, rusk, cakes and dairy products like cheese, butter and milk. The company’s plants are located at Mumbai, Kolkata, Delhi,Chennai and Uttaranchal. According to a television news report, Danone will sell its entire 25.5% stake or 60.86 lakh shares in Britannia to Wadias on 14 April 2009. Wadia Group will buy stake
Leila Lands. There has been a long dispute between the two copromoters of Britannia – the Wadias and the French foods major Groupe Danone – over the Tiger brand. The Tiger brand was developed here in India by Britannia Industries, and the Wadias claim that Danone has used the Tiger brand in about 70 countries and they want compensation for it. Danone’s 25.5% stake in Britannia Industries is held through Associated Biscuits International (ABIL), which is a 50:50 joint venture between the Wadia Group and Danone. ABIL holds 45.13% in Britannia Industries as on December 2008. The mid-cap FMCG products maker has an equity capital of Rs 23.89 crore. Face value per share is Rs 10. The current price of Rs 1513.85 discounts the company’s Q3 December 2008 annualized EPS of Rs 77.27, by a PE multiple of 19.59. Buy at any decline.
Related posts: