The markets remain volatile and in the red as the fear of recession has gripped the market. Amid the turmoil, investors turn to stocks that hold their ground. A defensive stock is a stock that provides consistent dividends and stable earnings regardless of the state of the overall stock market.
Here are two defensive stocks recommended by analysts in the volatile market for an upside of up to 27%:
Britannia Industries Limited
The shares of Britannia Industries are trading 1.65 per cent higher at Rs 3,850 levels till 11.30 am on Tuesday. In the past five days, the stock has added 4.2 per cent. Over the past six months, the stock has gained approximately 24 per cent.
Recently the company announced that its board has elevated Varun Berry to executive vice-chairman and managing director with immediate effect. In addition to that, Rajneet Kohli has been appointed as executive director and CEO, beginning on September 26, 2022.
Brokerage BNP Paribas has a ‘Buy’ rating on Britannia Industrie with a target price of Rs 4,330 which represents an upside of 13% from the current levels.
In Q1FY23, the company reported total revenue of Rs 3,700 crores which grew from their revenue of Rs 3,403 crores in the same period a year ago. In the quarter under review, their net profit declined to Rs 335 crores from Rs 386 crores in Q1FY22.
Britannia Industries, famous for biscuits brands Good Day biscuits and Tiger Biscuits, is one of the leading food companies with a 100-year legacy in India. Part of the Wadia group, some of the other famous brands under the company includes NutriChoice, Milk Bikis, and Marie Gold biscuits.
The company has a market capitalization of Rs 92,756 crores and a dividend yield of 1.47% as on September 27th, 2022.
ITC Limited
The shares of ITC Limited were trading in green at Rs 335 levels in the early hours on Tuesday. On Friday, the stock reached its new 52-week high of Rs 349.55. The stock has been on the roll and so far this year it has delivered a return of 53 per cent YTD.
The Tobacco-to-FMCG giant is racing with Nestle India to acquire a stake in Yoga Bar, a healthy snack company. Sproutlife, the parent company of Yoga Bar, has been looking for strategic and financial investors to finance Rs150 crore.
The brokerage firm Centrum has a ‘Buy’ rating on ITC with a target price of Rs 424 which represents an upside of 27% from the current levels.
The company recorded a total sales of Rs 18,489 crores in Q1FY23, up from Rs 14,240 crores in the same quarter last year. Their net profit rose to Rs 4,462 crores in the current quarter, up from Rs 3,343 crores in Q1FY22.
ITC Limited is an Indian conglomerate company with a diversified presence across industries such as FMCG, hotels, software, packaging, paperboards, speciality papers, and agribusiness.
The company has a market capitalization of Rs 4,17,728 crores and a dividend yield of 3.41% as of September 27th, 2022.
Written by Anoushka Roy
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
