Britannia Industries Breakout
1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on RSI close below 30 (or use any other method of your liking)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
After a consolidation since September 2021,
BRITANNIA has given a breakout today. Buy with a stop just below ₹3800. (One can use the low of the previous bar/supertrend indicator/previous support point/fixed percentage from the buy price as stop loss also)
Strengths: -
1. Quarterly sales growth is at 21% and quarterly profit growth is at 28%
2. 10 year and 5 year average ROE more than 20%
3. Interest Coverage at 13.8 (greater than 3 is good) and FCF to CFO at 73%
4. Dividend yield at 1.37% (consistent dividend payer since 2011)
Weaknesses: -
1. Stock is trading at 48.9 times of its book value
2. The company has delivered a poor sales growth of 9.32% over the past five years.
3. Borrowings increased to 3038 Cr in March 2022 from 2481 Cr in March 2021
4. Debt to equity at 1.49 (greater than 1 is not good)
5. On 16th August the credit rating agency ICRA revised its outlook from stable to negative. It has said in its credit rating report, "The revision in the outlook on the long-term rating of Britannia Industries Limited (BIL or the company) reflects the gradual weakening in the liquidity position of the company primarily on account of higher dividend pay-outs over the last three years, issue of bonus debentures to the shareholders and an increase in short-term borrowings (please go through the credit rating report for better understanding)
Disclaimer: I am not SEBI Registered. Do trade or invest at your own risk, I am not responsible for any losses and won't claim anything from your profits either. Take financial advice from your advisors before jumping in.
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on RSI close below 30 (or use any other method of your liking)
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
After a consolidation since September 2021,
BRITANNIA has given a breakout today. Buy with a stop just below ₹3800. (One can use the low of the previous bar/supertrend indicator/previous support point/fixed percentage from the buy price as stop loss also)Strengths: -
1. Quarterly sales growth is at 21% and quarterly profit growth is at 28%
2. 10 year and 5 year average ROE more than 20%
3. Interest Coverage at 13.8 (greater than 3 is good) and FCF to CFO at 73%
4. Dividend yield at 1.37% (consistent dividend payer since 2011)
Weaknesses: -
1. Stock is trading at 48.9 times of its book value
2. The company has delivered a poor sales growth of 9.32% over the past five years.
3. Borrowings increased to 3038 Cr in March 2022 from 2481 Cr in March 2021
4. Debt to equity at 1.49 (greater than 1 is not good)
5. On 16th August the credit rating agency ICRA revised its outlook from stable to negative. It has said in its credit rating report, "The revision in the outlook on the long-term rating of Britannia Industries Limited (BIL or the company) reflects the gradual weakening in the liquidity position of the company primarily on account of higher dividend pay-outs over the last three years, issue of bonus debentures to the shareholders and an increase in short-term borrowings (please go through the credit rating report for better understanding)
Disclaimer: I am not SEBI Registered. Do trade or invest at your own risk, I am not responsible for any losses and won't claim anything from your profits either. Take financial advice from your advisors before jumping in.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.