India's Britannia Industries gains after Kotak starts at 'buy'

Updated: Apr 11 2014, 02:38am hrs
Britannia"Britannia's strong brands/products and improving execution underpin our positive stance on the stock," Kotak said.
Shares in India's Britannia Industries Ltd gain 2.2 percent after broker Kotak Institutional Equities started coverage of the stock with a "buy" rating and a target price of 1,050 rupees.

"Britannia's strong brands/products and improving execution underpin our positive stance on the stock," Kotak said in a report on Thursday.

Kotak adds Britannia shares will also benefit from improvements in its manufacturing efficiency and distribution, better profitability in the non-bakery unit and a trend towards more premium biscuits among other factors and can re-rate from current valuations on margin expansion, preimunization trends in biscuits and potential increase in dividend payouts.