Britannia Industries Ltd. share price target

Recommendation: With an upside potential of 14% from the CMP, we maintain our BUY rating on the stock.

AIAE: Soft quarter, volume growth uncertain; cut to HOLD. BOB Essential Commodities Index: How prices look in Jan'24. SYRMA: Margin slide continues; retain HOLD. BRIT: Faster volume growth to boost profitability

Britannia’s revenue growth of 1% YoY was underwhelming as volumes largely remained flattish due to slowdown and regional competition. Focus states also witnessed some deceleration in growth. With correction in input cost, it has taken only ~2% pricing correction vs ~20-22% price increases over last 24 months.

Another soft quarter from BRIT (revenue up just 1% YoY), though EBITDA margin expanded due to lower input cost and savings

With an upside potential of 17% from the CMP, we maintain our BUY rating on the stock.

Recommendation: With an upside potential of 10% from the CMP, we maintain our BUY rating on the stock.

Relatively soft quarter (revenue up just 8% YoY) due to stiffer local competition and sluggish rural growth

Britannia’s revenue growth of 9% YoY was below our (and consensus) estimates as volumes largely remained flattish with correction in pricing. Resurgence of local competition with pricing correction means growth has to be largely driven by volumes which could lag due to channel de-stocking and outperformance of local players.

With an upside potential of 15% from the CMP, we maintain our BUY rating on the stock.

Britannia’s revenue growth of 13% YoY was above our estimates. Gross margin and EBITDA margin expansion of 690bps YoY and 440bps YoY to 44.9% and 19.9% (very close to all time high margins) was driven by pricing flow through, lower input cost index and strategic raw material buying.

Strong 13% YoY topline growth in Q4 fuelled by pricing, enhanced distribution reach and market share gains