Buy Britannia Industries; target of Rs 4279: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Britannia Industries has recommended buy rating on the stock with a target price of Rs 4279 in its research report dated October 05, 2020.

October 06, 2020 / 12:16 PM IST
  • bselive
  • nselive
Todays L/H

Prabhudas Lilladher's research report on Britannia Industries

We are Cutting FY21/22/23E EPS by 5.9/6.8/7.5% despite EBIDTA change by -1/2.7/1% due to higher interest burden (proposed bonus debentures of Rs10bn) and Rs28.4bn dividend payout for FY20/FY21. We believe best quarter is behind and impact of unlocking and pantry destocking has started softening growth rates. Long term outlook remains intact led by innovations, affordable packs/pricing (biscuits–Rs5/10 in premium brands), direct distribution reach (3x since 2014), success in non- biscuits segments (Cake, Cream wafers, salted snacks, milkshakes – 19% sales CAGR over FY20-23), cost efficiency programs (Rs2.5bn/1.5-2% of sales) and high growth in Hindi heartland (1.2-2.5x). We estimate EBIDTA CAGR of 19% and PAT CAGR of 13.8% due to lower other income and higher interest. FCF/Adj PAT at 63% (38.5% in FY18) is rising, although its lower than 83% for NEST, largest foods player.


We cut target price from Rs4316 (SOTP based on 46xSept22 EPS) to Rs4279 (46xFY23 EPS). BRIT at 41.4xDec22 consol EPS trades at 22% discount to NEST. Retain Buy.

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.

Broker Research
first published: Oct 6, 2020 12:16 pm

stay updated

Get Daily News on your Browser
ISO 27001 - BSI Assurance Mark