Govt push for rural consumption should help Britannia Industries stock

The firm will also benefit from launches as well as expansion of distribution network

The share price of Britannia Industries (valued at 52 times FY20 earnings and among the highest in the FMCG segment) shed about three per cent in just two trading sessions compared to a 1.6 per cent fall in the Sensex.
 
Despite Q3 numbers being almost in line with analysts’ expectations, the lower volume growth impacted investor sentiment.
 
While net sales grew by 10.5 per cent year-on-year to Rs 2,827.4 crore against analyst expectations of Rs 2879 crore, net profit was up 13.8 per cent to Rs 300.1 crore but lower than Street estimates of Rs 312 crore.