The 36 reports from 10 analysts offering long term price targets
for Britannia Industries Ltd. have an average target of 4014.56. The consensus estimate
represents an upside of 10.54%
from the last price of 3631.85.
Nippon Life India Asset Management: NAM has been able to stabilize its market share in the high-margin equity segment over the past two quarters at 7%. We expect it to focus on improving performance to continue recouping its lost market share. Additionally, we expect the company to benefit from increased credibility to raise HNI/institutional capital. Driven by cost optimization, we expect the company to deliver an FY21-23E revenue/NOPLAT CAGR of 12.7/17.5%. We maintain our ADD rating on the stock with a target price of INR360, valuing the stock at 36x Mar-23E NOPLAT + Mar-22E cash and investments. The stock is currently trading at FY22E/23E EV/NOPLAT of 39.9/32.8 and P/E of 34.4/28.9x. Symphony: Symphony clocked an all-round recovery with domestic, exports and subsidiaries revenues seeing beat in expectation. High trade inventory impacted domestic revenue during 9MFY21 (down by 50% YoY) while the strong 28% YoY growth in 4QFY21 (despite a firm base) reflects positive sentiment of trade partners. RoW revenue grew by 46% YoY, owing to robust exports (delay in shipment in 3Q) and recovery of CT, Australia (up 85% YoY). Thereby, consolidated revenue saw robust 36% growth. Domestic EBIT margin contracted by >650bps YoY, owing to high commodity inflation and delay in price hike. RoW EBIT margin saw sharp improvement (18% vs. 2% YoY) due to margin recovery in CT, Australia (EBITDA margin of 17% vs. -2% YoY). We are encouraged by an all-round recovery (key rationale for our stock upgrade in Jan-21); however, localised lockdown has raised concerns on summer-2021 performance for cooling products. As...
The structural story for BRIT remains strong, especially aided by: a) direct reach expansion to ~2.4m outlets (second best after HUVR) and b) further investment in IT infrastructure as highlighted in 4QFY21. The remarkable market share improvement for eight consecutive years will continue as the company widens its moats over peers. Maintain BUY....
It has reported consolidated revenue growth of 13% for the year to Rs. 12,883 crores. Consolidated Operating Profit increased 39% for the year to Rs. 2,311 crores. Consolidated Operating Profit % recorded an increase of 340 bps during the year and return on capital employed stood at 40% for the year. The Operating profit of the Company has been steadily growing & has increased from 4% in 2009-10 to 18% in the current year making it amongst the most profitable food companies in the World. In addition, the Company has been consistently...
We maintain BUY with TP of Rs. 3,890 (earlier Rs. 4,170) as we reduce our multiple to 43x FY23E EPS (earlier 45x).Key downside risks to our estimates easing of lockdown, faster adoption of out-of-home consumption and sudden surge in RMs.
Strong structural opportunity: BRIT's opportunity for growth is significant, with the overall Biscuits category estimated to grow in the mid-single digits. Furthermore, the opportunity in terms of market share gains is even greater BRIT's market share is only in the mid-30s despite the company being the largest player in the Biscuits space. The broad Packaged Foods market (estimated at USD4050b) presents the strongest structural opportunity in India's consumption space. BRIT's FY21E revenue of ~USD1.8b is a fraction of this addressable market....
Strong structural opportunity: BRIT's opportunity for growth is significant, with the overall Biscuits category estimated to grow in the mid-single digits. Furthermore, the opportunity in terms of market share gains is even greater BRIT's market share is only in the mid-30s despite the company being the largest player in the Biscuits space. The broad Packaged Foods market (estimated at USD4050b) presents the strongest structural opportunity in India's consumption space. BRIT's FY21E revenue of ~USD1.8b is a fraction of this addressable market....
Britannia Ind Q3 PAT rises 22% YoY, beats estimates The FMCG Companys Consolidated Total income rose by 6.13% to Rs 3165.61crore in Q3 FY21 from Rs 2982.68 crore in Q3 FY20. Profit before tax rose by 23.4% to Rs 613.73 crore in Q3...
We maintain BUY with TP of Rs. 4,170 as we value the stock at 45x its FY23E EPS and roll forward to FY23E numbers. Key downside risks to our estimates faster adoption of out-of-home consumption and upside risk is onset of COVID-19 second wave.
Britannia Industries (BRIT) was aided by a confluence of positive factors in 9MFY21, such as high in-home consumption (biscuits constitute 7580% of sales), reduction in ad spends, decline in material cost, and low promotional spends (owing to strong demand). These are likely to drive the strongest...
We are increasing FY21/22/23 EPS estimates by 5.3/0.1/-0.9% on better than expected margin delivery due to benign inputs despite slow recovery in MT, Insti, OOH channels. 3Q revenues grew by 5.7% (4% volume growth) as pantry stoking normalized and transit cluster underperformed. BRIT continues to build on its strategic pillars of 1) innovations 2) affordable packs/pricing (biscuitsRs5/10 in premium brands) 3) direct distribution (up 16% since March 20) 4) Adjacent product segments (Cake, Cream wafers, salted snacks,...
We have marginally tweaked our estimates for FY21/22 given the modest growth commentary. Retain BUY with revised TP of Rs. 4,170 (Rs. 4,300 earlier) as we value the stock at 50x its FY22E EPS.
Our view: We believe companies with higher revenue mix from essential commodities and rural will continue to benefit. Ecomm will continue to gain pace as consumers remain wary about venturing into crowded MT stores. Hence, companies with a strong presence and diversified offerings in Ecomm will do well. However, we expect a recovery in categories like Liquor and QSR to continue to be strong, driven by easing of restrictions and strengthening demand for home delivery. While the sector has underperformed Nifty by ~25% in the past six months, we still see limited absolute upsides, given rich valuations and risk-reward remain balanced, keeping us on the sidelines. We see better opportunities in select stocks where business models are strong and valuations have normalised in the last 12-18 months. Aggregate revenue/EBITDA to grow by 4/5%: Our FMCG coverage universe is expected to deliver growth of 4/5% YoY in revenue/ EBITDA (ex-GSK, 1/1%) in 2QFY21 (vs. +6/+6% in 2QFY20 and -14/-13% in 1QFY21). Packaged foods, immunity building healthcare and hygiene segments continue to witness healthy growth while personal care, tobacco, liquor, and OOH categories continue to remain impacted, even as we see QoQ recovery trends. Given pantry loading is over, channel inventory is normalising and unlock across states is continuing, we expect growth divergence to normalise further in 3QFY21 for these categories and return to YoY growth. Personal and Homecare saw strong recovery, led primarily by recovery in the value segment. Recovery across categories has been driven by rural markets, as restrictions continued in varying degrees in most urban...
