Britannia is the most undervalued share in the space it operates.-Food processing. It is a stronger leader in Biscuits than anyone in India. The company under the leadership of Vinita Bali has made excellent inroads into Diary business with supply from New Zealand sibsidiary. The company has also Keki Dadiseth, Former CMD of HUL in the board actively guiding the compnay. Very good corporate governance on a par with MNC companies. It is the BEST from Nasli Wadia group.
The share price is cum Bonus Debenture of Rs 170 per share with interest of 8.5percent. EPS is expected about 80. Highest book value in the sphere with no loans. Excellent management. Buy for profits slow and steady peacefully. The company after the Bonus debenture issue may go for split into 10 shares. Then the price can not be below 275-300 per one rupee share.
Also remember FY 2010-11 will be one of the worst taxing years with Congress Govt taking a DONT CARE attitude since no more electiosn. Economy is not in such a great condition too for tax sops. So Britannia is likely to emerge as the Safe Hedge in this situation alongwith Nestle and GSK Health. BUY as much now belwo 1700!
| NIFTY 
