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Last Updated : Aug 08, 2016 12:40 PM IST | Source: CNBC-TV18

PhillipCap has buy on Britannia with price target Rs 3050

The house currently has a target price of Rs 3050 on the stock and earnings per share estimate Rs 90 for FY18, said Jubil Jain of PhillipCapital.


For the first quarter, Britannia Industries profit grew by 13.15 percent to Rs 219.13 crore compared with Rs 193.66 crore in year-ago period, driven by other income & better-than-expected operational performance. Revenues matched analysts' estimates, rising 9 percent to Rs 2,196.6 crore on yearly basis.


The year-on-year consolidate EBITDA was up 9.7 percent at Rs 316.2 crore versus Rs 288.3 crore but EBITDA margins were flat at 14.4 percent 14.3 percent (YoY)


Throwing more light on the numbers, Jubil Jain, Equity research analyst, PhillipCapital told CNBC-TV18 that overall the numbers were good but the only concern is on gross margins which have contracted a bit but would keenly watch the management commentary in the concall about price hikes and how they will manage costs.

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The house currently has a target price of Rs 3050 on the stock and earnings per share estimate Rs 90 for FY18. They have a buy rating on the stock, he added.

Jubil Jain
Jubil Jain
Equity research analyst|PhillipCapital

He said the house has already assume an increase in EBITDA margins in the estimates, so their numbers for the stock would not change much but multiples for the stock may get better because of the overall beat over estimates.


"We continue to outpace the market with our go to market strategy of creating a robust distribution network with unrelenting focus on rural and our weak states. The category growths remained subdued during the quarter' however I am hopeful that a good monsoon and impact of 7th pay commission would aid consumption and boost demand going forward, said Varun Berry, Managing Director of the company in a press release.



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First Published on Aug 8, 2016 12:40 pm
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