ET NowIn a chat with ET Now, Mayuresh Joshi, Fund Manager, Angel Broking, shares his view on the Britannia Industries. The expert also briefly talked about Bajaj Finance.
ET Now: Bajaj Finance is a completely different consumer story. You can argue that it leans towards urban consumption, finances, a lot of electronic gadget buying. The stock has done extremely well. Then we have Britannia, which is not necessarily just a story of urban consumption, but consumption at large. This stocks is also trading very close to its life highs. Also we have an export-oriented stock called Welspun India. It is also clocking fresh highs. In short, there is no clear pattern to the winners right now. But out of these three starkly different stories, which one do you like if you like any of these?
Mayuresh Joshi: As a disclaimer we have no coverage on Welspun India. Bajaj Finance have expensive valuations in our opinion. When it comes to Britannia, valuations are creating a sort of a headwind at the current juncture. Time and again, I have been reiterating the point that long-term investors holding onto this stock should stay invested in this stock.
The managerial changes that have happened and the kind of transition that we are seeing specifically in the premium cookies market, is positive. The cookie segment is growing at an exponential pace for the company.
Going forward, a growth of 17 per cent for this company in terms of the overall market size cannot be ruled out. It is true that there is competition in the market.
A lot of competitors are entering the market, but Nutrichoice is one of Britannia’s key products within the premium cookie market that is gaining substantial market share. Clearly, valuations is a headwind to the stock, but investors should continue holding on to this stock.
ET Now: Bajaj Finance is a completely different consumer story. You can argue that it leans towards urban consumption, finances, a lot of electronic gadget buying. The stock has done extremely well. Then we have Britannia, which is not necessarily just a story of urban consumption, but consumption at large. This stocks is also trading very close to its life highs. Also we have an export-oriented stock called Welspun India. It is also clocking fresh highs. In short, there is no clear pattern to the winners right now. But out of these three starkly different stories, which one do you like if you like any of these?
Mayuresh Joshi: As a disclaimer we have no coverage on Welspun India. Bajaj Finance have expensive valuations in our opinion. When it comes to Britannia, valuations are creating a sort of a headwind at the current juncture. Time and again, I have been reiterating the point that long-term investors holding onto this stock should stay invested in this stock.
The managerial changes that have happened and the kind of transition that we are seeing specifically in the premium cookies market, is positive. The cookie segment is growing at an exponential pace for the company.
Going forward, a growth of 17 per cent for this company in terms of the overall market size cannot be ruled out. It is true that there is competition in the market.
A lot of competitors are entering the market, but Nutrichoice is one of Britannia’s key products within the premium cookie market that is gaining substantial market share. Clearly, valuations is a headwind to the stock, but investors should continue holding on to this stock.
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(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
...moreDownload The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
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