Britannia Industries Ltd. share price target

Britannia Industries Ltd (BRIT) is India's leading packaged foods company. Britannia's product portfolio includes Biscuits, Bread, Cakes, Rusk, and Dairy products including cheese, beverages, milk and yoghurt.

Strategy in-place to become a Total foods company' Britannia Industries Ltd (BIL), a flagship company of the Wadia Group, is one of the largest packaged food companies in India with presence in bakery & dairy products....

Britannia Industries:is part of the Wadia group, is a major player in the Indian food market (snacks) with a strong position in the domestic biscuit segment; HDFC Bank: is Indias largest private sector bank in terms of asset size (~Rs 11 trn) and network (+4800 branches)

Double Digit Volume Growth on the Back of Brand Building and Vast Distribution Network: Britannia has managed to post healthy set of revenue numbers which are in line with our estimates driven by double digit volume growth. During the quarter, Britannia reported Total Revenue from Operations at Rs. 25438 Mn, posting YoY growth of 8.7% when compared to Rs. 23398 Mn in Q1FY18.

Revenue from Operations on comparable basis grew by 14% Y-O-Y to `2527 crs in Q1FY19. This was on the back of double digit volume growth primarily due to investment in brands and widening distribution network. International business remained flat due to slow-down in Middle East and Africa. EBIDTA grew by 18.5% Y-O-Y to `389 crs in Q1. Margins expanded by ~110bps to 15.3%. Its accelerated cost efficiency programme and endeavour to leverage fixed costs have helped the company to improve margins....

We model 23% EPS CAGR over FY18-21E. We value at 45x Jun-20 EPS. Our TP is at Rs 6,257 (earlier Rs 6,307) BRIT reported another solid quarter with revenue growth of 14% (volume-led) to Rs 25.3bn (exp. 13.5%). Higher than expected other expenses (up 14%) led to a marginal miss in EBITDA estimates. EBITDA/PAT were up 19/19% (exp. 26/24%).

Q1FY19 results came in line with our estimate. The company posted double digit volume growth in the base biscuit business double digit volume growth in the third consecutive quarter. 130/80bps expansion in GM/EBITDA margin was driven by deflation in key commodity prices. However, flat growth in the IB was disappointing. We believe that the company is on the right track to grow the business and improve profitability with expanding distribution reach, increasing in-house manufacturing and controlling operational overheads. Furthermore, better monsoon this...

Revenue grew by 0.69% to Rs. 2527.24 Cr in Q1FY19 when compared to the previous quarter. Britannia Industries Ltd Q1FY19 results Comment

Double Digit Volume Growth from Domestic Business and Healthy Margins on the back of Cost Efficiency Programs: Britannia has managed to post healthy set of revenue numbers driven by doubledigit volume growth. During the quarter, Britannia reported Total Revenue from Operations at Rs. 25375 Mn, posting YoY growth of 9.6% when compared to Rs. 23161 Mn in Q4FY17.

EBIDTA grew by 29% Y-O-Y to `397crsin Q4. Margins expanded by ~190bps to 15.6%. Its accelerated cost efficiency programme and endeavour to leverage fixed costs have helped the company to improve margins. For the full year FY18 EBIDTA grew by...