A Tough Cookie To Crack: How Britannia Baked 2,90,425% Returns

Published by Trinkerr Academy on

If you had ₹1L invested in Britannia in September 2002, you could have had ₹31.03 crores today! This multibagger has given its investors ₹29,04,25,500 in profits and ₹1,99,37,758 in dividends. Let’s check the company out.

🍪 Stock Name: Britannia Industries Ltd.

💫 About The Company
Britannia Industries is among the leading food companies in India, with a legacy spanning over 100 years. The dairy and snacks conglomerate’s annual revenues are in excess of ₹9000 crores. It belongs to the Wadia Group, a reputed Indian business house that has a presence in a wide range of business segments like airlines (Go Air), real estate (Bombay Realty), textiles (Bombay Dyeing), plantation and others.

🧺 Product Portfolio
Britannia’s product portfolio has:
🍞 Bread
🍰 Cakes
🥖 Rusk
🐄 Dairy products like cheese, beverages, milk and yoghurt
🍪 Biscuits under iconic brands like Good Day, Tiger, Marie, Nutrichoice and Milk Bikis

🌍 Global Presence
It has a PAN India presence and its products are available in more than 50 lakh+ stores across India. 50% of Indian homes use Britannia’s products. 5.5% of the revenue is derived from global Markets by exports to around 80 countries and has manufacturing units in UAE and Oman. Britannia is a major player in the biscuit segment in UAE and has the second spot.

😷 COVID Impact
The company was not severely impacted during the crisis by following the 80:20 rule— 80% of the revenue comes from 20% of its products. The focus was shifted to this 20%, which resulted in productivity being streamlined and efficient production.

💰 Stock Value
💵 Britannia had 2 bonus issues and 2 stock splits:
📅 Stock split on 8th September 2010 in the ratio of 10:2
📅 Bonus issue on 22nd August 2019 in the ratio of 1:1
📅 Stock split on 29th November 2019 in the ratio of 2:1
📅 Bonus issue on 25th May 2021 in the ratio of 1:1
The effective number of shares went from 1,917 to 76,680.

💵 On September 27, 2002, the shares of the company were trading at ₹52.15, while they were priced at ₹3787.50 as of September 26, 2022.


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