Britannia Industries Ltd. share price target

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...

Gross margin improved 210bps YoY to 42.0% in Q3FY21 primarily aided by cost efficiency measures. Resultantly, EBITDA margin expanded 260bps YoY to 19.7% partially offset by marginal increase in...

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 (BRIT) 3QFY21 result was in-line with our estimates. Revenue growth moderates to 6%YoY (vs 12% in 2QFY21) driven by normalization in consumer upstocking trend. BRIT used to grow at this rate pre-covid during FY20. General trade continued to grow at a healthy rate led by strong demand in rural and recovery in urban markets. Modern trade and institutional business continued to lag led by lower footfalls in stores, offices schools, railways etc. Gross margin expanded for 3rd consecutive quarter driven by deflationary raw material cost and cost optimization. We continue to maintain our positive outlook on the stock. We have marginally trimmed our estimates based on management guidance. Our revised TP stands at Rs 4,564 (vs...

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,...

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...