Britannia: Buyback bonanza - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Britannia: Buyback bonanza

Jun 14, 2001

Britannia Industries has pegged the buyback of its shares at a price not exceeding Rs 750 per share. The company plans to buyback upto a maximum of 1 million equity shares, at an outflow of not more than Rs 550 m for this purpose. This was decided at the company’s board meeting held today. However, this offer is subject to the approval of its shareholders in the ensuing AGM slated on 28 July 2001.Britannia is India’s largest bakery products manufacturer. It dominates the Rs 30 bn branded (organised) biscuits segment with a 38% (value-terms) market share. It is also a dominant player in the organised bread and cakes segment. Currently, Britannia is focusing on expanding its business to dairy products like cheese, butter, flavored milk and dairy whiteners.

The maximum buyback price (Rs 750) is at a 15% premium to the prevailing market price. The Britannia stock closed at around Rs 652 today. But this (maximum) offer price is at an 11% discount to the stock’s 52 week high of Rs 839.

If the company does manage to buyback 1 m equity shares through this offer, its share capital will stand reduced to Rs 269 m. Britannia’s earning per share (in FY01) will improve from Rs 21.1 to Rs 21.9 per share.

However, it is interesting to note that the company is looking to buyback 1 m shares by paying a maximum of Rs 550 m, thereby indicating its willingness to shell out Rs 550 per share. Does this mean that the management perceives the fair value of the Britannia share to be Rs 550? Or is it Rs 750?

Equitymaster requests your view! Post a comment on "Britannia: Buyback bonanza". Click here!


More Views on News

BRITANNIA Announces Quarterly Results (3QFY21); Net Profit Up 22.5% (Quarterly Result Update)

Feb 10, 2021 | Updated on Feb 10, 2021

For the quarter ended December 2020, BRITANNIA has posted a net profit of Rs 5 bn (up 22.5% YoY). Sales on the other hand came in at Rs 32 bn (up 6.1% YoY). Read on for a complete analysis of BRITANNIA's quarterly results.

BRITANNIA Announces Quarterly Results (2QFY21); Net Profit Up 22.9% (Quarterly Result Update)

Oct 22, 2020 | Updated on Oct 22, 2020

For the quarter ended September 2020, BRITANNIA has posted a net profit of Rs 5 bn (up 22.9% YoY). Sales on the other hand came in at Rs 34 bn (up 12.1% YoY). Read on for a complete analysis of BRITANNIA's quarterly results.

BRITANNIA 2019-20 Annual Report Analysis (Annual Result Update)

Aug 6, 2020 | Updated on Aug 6, 2020

Here's an analysis of the annual report of BRITANNIA for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of BRITANNIA. Also includes updates on the valuation of BRITANNIA.

Varun Beverages Q1 Review: Net Profit Rises Two-Fold; Board Announces 1:2 Bonus Issue (Views On News)

May 4, 2021

Varun Beverages' two-fold jump in profit came on the back of strong volume growth and demand recovery.

Burger King IPO: Should You Subscribe to This QSR Chain Business? (IPO)

Dec 2, 2020

Does the company with one of the fastest-growing QSR chains in India have sound prospects?

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Jun 17, 2021 (Close)


  • Track your investment in BRITANNIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks