(%) Margins (%) BRIT declared an in-line set of results, but we are pleasantly surprised with the commentary on ~24% avg. The management attributed this growth to high in-home consumption in the lockdown period and BRIT being quicker off the block than peers after the initial COVID-19-led disruption. Two factors highlighted in the post-results call could keep multiple re-rating in check. (a) The management going back on its stated commitment of Inter Corporate Deposits (ICDs) not exceeding INR5b. (b) The company following the policy of not repaying debt while letting the investment book to build up despite a sharp inventory reduction in the past six months. This would lead to consequent concerns over ROCE. While we have revised our FY21 and FY22 EPS by 19.8% and 15.4%, respectively, but valuations fully capture upside at 45.5x FY22 EPS. Standalone sales were flat YoY at INR26.9b.