Sharekhan's research report on Britannia Industries
Britannia Industries Limited (Britannia) registered a mix-bagged performance in Q4FY2021, with revenue growth of 8.2% (volume growth of 8%), while OPM expanded by just 30 bps to 16.1% (less than street expectation) due to higher ad spends; PAT declined by 3%. In the second wave of COVID-19 surge, the company was well prepared with production and distribution of products. Demand environment is stable, but the company is monitoring the same on week-to-week basis. The company is targeting to achieve low double-digit volume growth, driven by market share gains and distribution expansion in the back drop of normal economic environment. OPM is expected to remain high because of efficiencies through cost-saving initiatives. We broadly maintain our earnings estimates for FY2022/FY2023.
Outlook
The stock has corrected by 7% in the past three months and is trading at 36x its FY2023E earnings. We maintain our Buy on the stock with an unchanged PT of Rs. 4,200.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
