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Last Updated : Sep 18, 2018 01:42 PM IST | Source: Moneycontrol.com

Accumulate Britannia Industries; target of Rs 6608: Dolat Capital

Dolat Capital recommended accumulate rating on Britannia Industries with a target price of Rs 6608 in its research report dated August 08, 2018.

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Dolat Capital's research report on Britannia Industries


Q1FY19 results came in line with our estimate. The company posted double digit volume growth in the base biscuit business – double digit volume growth in the third consecutive quarter. 130/80bps expansion in GM/EBITDA margin was driven by deflation in key commodity prices. However, flat growth in the IB was disappointing. We believe that the company is on the right track to grow the business and improve profitability with expanding distribution reach, increasing in-house manufacturing and controlling operational overheads. Furthermore, better monsoon this season and changing macros should help.


Outlook


We have revised our FY19E and FY20E earnings estimate at ` 101.4 and ` 125.9 respectively considering strong growth in Q1 and expected price hikes. Valuing at 52x FY20E EPS to arrive at a TP of ` 6,608. Maintain Accumulate.


For all recommendations report, click here


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First Published on Aug 10, 2018 03:37 pm
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