Hold Britannia Industries, advises Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "Good set of numbers by Britannia Industries; volume growth surprised, the margins on the EBITDA front have surprised in a substantial manner. Having said that, the kind of distribution reach that Britannia has increased over the past few years - 4.5-4.6 million outlets, their direct distribution reach is almost 1.55 million outlets."

"Second, the cost saving of Rs 155 crore odd, the management expects 40 percent more to come in FY'18. They have ramped up their R&D expenditure, there is a line which is expected to come in Ranjangaon which probably has six lines both for biscuits, cakes as well as rusks. There is competition from competitors but the company has done pretty well. The Hindi belt which is probably a weak spot for Britannia, I think the volume growth thereof amidst competition is going to be the key."

"So, valuations are definitely on the higher side. The stock trades around 41 odd times FY'19 earnings. However leaving aside valuations if this growth pattern does continue over the next few quarters, I think the premium justifications can very well be justified. So, any investor holding the stock probably at lower level can continue to hold. It is a hold trade from our side," he said.