Britannia Industries Ltd.

NSE: BRITANNIA | BSE: 500825 | ISIN: INE216A01030 | Industry: Packaged Foods
| Expensive Performer
5857.5000 57.00 (0.98%)
NSE Oct 15, 2025 14:32 PM
Volume: 175.4K
 

5857.50
0.98%
HDFC Securities
BRIT has driven profitable growth in the last few years. However, weak macros and consumer sentiment pose challenges. Also, ICD exposures raise corporate governance concerns, even as they have declined in a quarter by ~30% to ~Rs 5bn (management guided for a capping at current levels). The stock has corrected ~20% since our downgrade (Jul-18). We are admirers of the brand equity, strategy and management execution and like its focus on expanding the addressable market (total snacks co.), but await concrete evidence for an upgrade. BRIT reported a dull show, mostly owing to weak macros. Modest volume growth and a sharp rise in costs led to negative oplev. EBITDA stagnated. BRITs plan to accelerate growth via new launches (~4% of rev.) has hit a speed bump. While management may keep a tight lid on costs hereon, 1HFY20 performance will be weak. 2H holds some hope. Our estimates fall ~5%; we have cut target P/E to 40x (vs 45x) on account of BRITs moderating trajectory. Our TP is Rs 2,674. Maintain NEUTRAL.
Number of FII/FPI investors increased from 885 to 948 in Jun 2025 qtr.
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