Britannia Industries share price gained over 2% intraday in an otherwise flat market after Japanese brokerage Nomura initiated a buy call on the stock. Share price of Britannia Industries  gained 2.6% to Rs 3,197 to Rs 3,243 compared to the previous close of Rs 3,118 on BSE. Britannia Industries  stock has gained 1.42% in last 2 days.

The stock stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages It has gained 3.24% since the beginning of this year and risen 16.39% during the last one year. The stock has gained 10.07% during last one month.

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Total 0.22 lakh shares changed hands amounting to turnover of Rs 6.22 crore on BSE. Market cap of the firm rose to Rs 75,152 crore. Nomura sees likely margin expansion and market share gain for the biscuits and cookies maker.

The brokerage sees 15 percent potential upside from current levels and has set a target price of Rs 3,595 for the stock.

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Britannia is likely to be least impacted by the consumption downturn and will benefit from the shift to in-home and packaged food consumption, Nomura said . Britannia has a wide portfolio of new products / new categories and stronger direct reach.

Hence, it is expected to gain market share and there will be gradual margin expansion, said Nomura which expects FY19-22 earnings CAGR of 12.7 percent.

In Q3 of last fiscal, biscuits and bakery products maker Britannia Industries posted a 23.26 per cent rise in consolidated net profit at Rs 369.88 crore in the thirdquarter ended December 2019. The company reported a consolidated net profit of Rs 300.07 crore in the same quarter of last fiscal.

Revenue from operations during the third quarter stood at Rs 2,982.68 crore compared with Rs 2,842.44 crore in the year-ago period.