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Last Updated : Dec 20, 2019 09:44 AM IST | Source: Moneycontrol.com

Britannia Industries share price falls after Macquarie maintains underperform view

Macquarie said the underperform thesis is based on lower growth estimates, as the slowing in the biscuit category will make the job tougher for the company.

 
 
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Britannia Industries share price declined by over a percent in the early trade on December 20 after brokerage firm Macquarie maintained underperform rating on the stock with a target price of Rs 2,662.

Macquarie said the underperform thesis is based on lower growth estimates, as slowing growth of the biscuit category will make the job tougher for the company.

"Street is building in 12.5 percent revenue CAGR for FY20-22, implying an 11.5 percent CAGR in biscuits and the company must gain market share of 100-150 bps per year to achieve 11-12 percent revenue CAGR," it said.

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The company reported a healthy September quarter scorecard and said it continued to invest to enhance its brand equity through focused product campaigns.

For the September quarter, the company posted a 32.90 percent increase in consolidated net profit at Rs 402.73 crore.

Net sales grew by 5.88 percent to Rs 3,022.91 crore against Rs 2,854.81 crore in the corresponding quarter previous fiscal.

The stock was trading 0.86 percent lower at Rs 3,084.35 on BSE at 0930 hours.

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First Published on Dec 20, 2019 09:44 am
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