FMCG stock at a new 52-week high after entering into a joint venture with a French company Bel SA & BDPL

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FMCG stock at a new 52-week high after entering into a joint venture with a French company Bel SA & BDPL
Credit: © Reuters.

The shares of Britannia Industries (NS: BRIT ) Limited opened in green on Wednesday morning and moved marginally to reach its new 52-week high of Rs 4,337.30 in the early hours. In the past five days, the stock has gained approximately 3.6 percent.

Recently, the company announced that it has entered into a joint venture agreement with French company Bel SA and Britannia Dairy (BDPL) for the development, manufacturing, marketing, distribution, trading, and selling of cheese products in India as well as international markets.

BDPL contributed 2.4% of consolidated sales of Britannia in FY22. Further, its net worth as of March 31st, 2022 stood at Rs 130 crore, which amounts to 5.1% of the consolidated net worth of Britannia.

As per the agreement, Britannia has transferred a 49% stake in its wholly-owned subsidiary Britannia Dairy to Bel SA in a share purchase agreement for a consideration of Rs 262 crore. The deal is expected to be completed by December 2nd, 2022.

Britannia Industries is one of India’s leading food companies with a 100-year legacy. It owns brands like Good Day, Tiger, NutriChoice, Milk Bikis, and Marie Gold . It also produces Bread, Cakes, Rusk, and Dairy products including Cheese, Beverages, Milk, and Yoghurt.

In the span of a month, the stock has gained approximately 15 per cent and in the last five months, it has gained 25 per cent. In the last five years, the stock has added 80 per cent to its share price.

In Q2FY23, the total revenue of Britannia Industries stood at Rs 4,379 crore and their net profit amounted to Rs 490 crore. The promoters of the company hold a 50.55 per cent stake in the company.

Written by Anoushka Roy

The post FMCG stock at a new 52-week high after entering into a joint venture with a French company Bel SA & BDPL appeared first on Trade Brains.

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