Two of India’s biggest FMCG players are Dabur and Britannia. Both companies have been around for over half a century and are responsible for some of India’s most iconic products such as Good Day and Chyawanprash.
However, both stocks have had a pretty flat year. Dabur’s share price has gone down around 1% since the start of the year, while Britannia’s share price has climbed by about 5%.
The Investment: If you invested ₹10,000 in Dabur on Aug. 31, 2020, you would have been able to purchase around 21 shares of the company. Today those 21 shares would have been worth around ₹11,635.
A similar investment in Britannia would have fetched you around 3 shares of the company, which would be worth around ₹13,000 today.
As seen from the numbers above, the stocks haven’t appreciated much in the past three years. But, these stocks are also known for paying regular dividends to their investors.
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In the past three years, Britannia has paid around ₹203/share as dividends. So your dividend payment for the three stocks would come up to ₹609. Dabur, in the past three years, has paid around ₹15.15/share as dividends. So you would have received ₹318.21 as dividends for your 21 shares.
The Financials: Being one of the top FMCG companies in the country, the two giants rake in huge sums of money every year. Here is a look at the two companies’ financials for the past three years.
Particulars | Companies | FY23 | FY22 | FY21 |
Revenue | Britannia | 16,516.4 | 14,359.1 | 13,449 |
Dabur | 12,292.5 | 11,975.3 | 11,281.8 | |
Profit | Britannia | 2,321.8 | 1,524.8 | 1,863.9 |
Dabur | 1,707.2 | 1,739.2 | 1,693.3 |
Brokerage Calls: Brokerages have a mixed view of the stocks. While some are cautiously positive, some are not so convinced. Take a look at the recent analyst calls on the two stocks.
Brokerages | Particulars | Dabur | Britannia |
HDFC Securties | Rating | Add | Sell |
Target Price | 570 | 4,300 | |
Geojit BNP Paribas | Rating | Hold | Buy |
Target Price | 605 | 5,020 | |
HDFC Securities | Rating | Add | Add |
Target Price | 625 | 5,300 | |
Axis Direct | Rating | Buy | Buy |
Target Price | 610 | 5,110 | |
BOB Capital Markets | Rating | Buy | Buy |
Target Price | 669 | ₹5,844 |
The Technicals: Now to the various crucial metrics that an investor should assess before making an investment decision. One such vital metric is EPS (earnings per share). Dabur’s EPS for the fiscal year 2023 stood at ₹9.8, whereas Britannia’s EPS for the same period was ₹96.4.
Presently, Dabur is trading at a P/E ratio (price to earnings) of 56.6x, while Britannia’s P/E ratio is at around 43.99x. Dabur’s market cap is around ₹97,870 crore, while Britannia’s market cap is around ₹1.08 lakh crore.
As of the end of the June quarter, promoter holding in Dabur was approximately 66.2%, whereas in Britannia, it was 50.6%.
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Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
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