Get App
Last Updated : Feb 12, 2019 04:35 PM IST | Source:

Accumulate Britannia Industries; target of Rs 3159: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Britannia Industries with a target price of Rs 3159 in its research report dated February 11, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

Prabhudas Lilladher's research report on Britannia Industries

Britannia is entering a new phase of growth powered by innovations and renovations like 1) Whole Wheat Vita Marie Gold, Goodday Cashew Almond, re-launches in 50-50 & Tiger Creams 2) significant revamp of cakes portfolio with entry in Brownie, Swiss Rolls and layered cakes under treat brand 3) PAN India launch of Treat cream wafers 4) success of Winky Cow milk shakes and 5) planned launch of Treat croissants in 4Q. although 3Q volume growth at 7% disappointed, we expect acceleration backed by expected surge in rural demand post interim budget and sustained levers of direct distribution expansion (0.25m addition/year) and higher growth in Hindi heartland. BRIT expects Input cost inflation of 4-5% in FY20 which is expected to be mitigated by 3-4% price increases and benefits of cost efficiency programs (Rs2.25bn in FY18 and FY19).


We estimate 18.5% PAT CAGR over FY19-21 and value the stock at 46xFY21 EPS given robust growth outlook and strong innovation pipeline and arrive at a SOTP based target price of Rs3159. Retain Accumulate for long term gains.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

First Published on Feb 12, 2019 04:35 pm
More From
Follow us on
Available On
PCI DSS Compliant