Sharekhan is bullish on Britannia Industries has recommended buy rating on the stock with a target price of Rs 3475 in its research report dated May 02, 2019.
Sharekhan's research report on Britannia Industries
Britannia Industries (Britannia) posted steady operating performance in Q4FY2019. Consolidated revenue grew by 10.3% and OPM stood flat at 15.6%. Volume growth of the domestic business was sustained at 7%. Innovation in core categories/adjacencies, distribution expansion and enhancing international presence remain the key earnings growth levers going ahead. Volume growth is expected to stay at 7-8% in the near term. Raw-material cost inflation expected to be ~4% in FY2020; prudent price hike, better revenue mix and operating efficiencies to help OPM improve by 70-100 BPS going ahead.
Trimmed earnings estimates for FY2020/FY2021 by 3.7%/4.4% to factor in little softness in sales volume; Maintained Buy with a revised PT of Rs. 3,475.
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