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The company's principal activity is the manufacture and sale of biscuits, bread, rusk cakes and
dairy products.
Analysis
We would like to include 4 stocks of Britannia Industries Ltd valued at Rs (9*5736.60) = Rs
51,629 in our portfolio. The Reasons for including Britannia Industries Ltd in our portfolio
are as follows.
• Earnings Per Share (EPS) – The term Earnings per Share (EPS)
represents the portion of a company's earnings, net of taxes and preferred stock
dividends, that is allocated to each share of common stock. Earnings per share
serve as an indicator of a company's profitability. In general, to consider a stock to
invest in the EPS should be increasing for the last 5 years. Trend for Britannia
Industries Ltd shows an increasing EPS for the last 5 years and the current EPS is
78.96
• Beta -
Beta is measure of volatility/risk when compared with broad market. The value of
beta is 1.21 for Britannia Industries Ltd which is a delight for us. Stocks with beta
higher than one are high risk and high return stocks. Their return is higher than
market return during uptrend.
• Dividend- For the year ending March 2018, Britannia Industries has declared an equity
dividend of 1250.00% amounting to Rs 25 per share. At the current share price of Rs 5736.60
this results in a dividend yield of 0.43%.
The company has a good dividend track report and has consistently declared dividends for the last 5
years.
Analysis
We would like to include 25 stocks of Cyient Ltd. valued at Rs (25*772.70) = Rs 19,317 in
our portfolio.
The Reasons for including Cyient Ltd in our portfolio are as follows.
• Earnings Per Share (EPS) –
The term Earnings per Share (EPS) represents the portion of a company's
earnings, net of taxes and preferred stock dividends, that is allocated to each share
of common stock. Earnings per share serve as an indicator of a company's
profitability. In general, to consider a stock to invest in the EPS should be
increasing for the last 5 years. Trend for Cyient Ltd shows an increasing EPS for
the last
5 years and the current EPS is 35.69
• Return on Equity (ROE) –
ROE (also known as Return on Networth) is the amount of net income
returned as a percentage of shareholders equity. As with return on capital, a
ROE is a measure of management's ability to generate income from the
equity available to it. ROEs of 15-20% are generally considered good.. Here
is this case the Cyient Ltd, ROE is 19.49. So, this stock is performing quite
well.
• Beta -
Beta is measure of volatility/risk when compared with broad market. The value of
beta is (-)0.15 for Cyient Ltd which is a good. Stocks with beta higher than one are
high risk and high return stocks. Their return is higher than market return during
uptrend.
Dividend- For the year ending March 2018, Cyient has declared an equity dividend of 260.00%
amounting to Rs 13 per share. At the current share price of Rs 772.70 this results in a dividend yield
of 1.68%.
The company has a good dividend track report and has consistently declared dividends for the last 5
years.