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Buy Britannia Industries; target of Rs 3960: Geojit

Geojit is bullish on Britannia Industries has recommended buy rating on the stock with a target price of Rs 3960 in its research report dated October 22, 2020.

October 23, 2020 / 03:32 PM IST
 
 
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Geojit's research report on Britannia Industries


Britannia Industries Limited is a leading food-products company in India. The company sells various brands of confectionaries in India and globally. Revenue rose 11.0% YoY, led by higher sales of goods (~9% YoY), supported by higher demand from rural area. EBITDA grew 37.2% YoY, with EBITDA margin improving 380bps to 20.1%, owing to decline in raw material prices and lower advertisement and promotion expenses. Further, net profit surged 23.2% YoY to Rs. 499cr in Q2FY21. We remain positive on the stock on account of healthy volume growth, rising distribution network and new products launches. Separately, we believe there’ll be a smooth road ahead as lockdown has ended.


Outlook


Hence, we upgrade rating to BUY on the stock, with a revised target price of Rs. 3,960 based on 46x FY22E adj EPS.


For all recommendations report, click here


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first published: Oct 23, 2020 03:32 pm

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