Buy Britannia Industries; target of Rs 4316: Prabhudas Lilladher
Prabhudas Lilladher is bullish on Britannia Industries has recommended buy rating on the stock with a target price of Rs 4316 in its research report dated July 17, 2020.
July 18, 2020 / 04:55 PM IST
Prabhudas Lilladher's research report on Britannia Industries
We are upgrading our FY21/22E EPS estimates by 13.4%/6.8% as BRIT seems confident of sustaining growth momentum on back of improved direct distribution in rural (up 15% in 3 months) and weak states, product innovation/launches (Cream wafers, milkshakes, biscuits, lassi), agility to rebound during Covid and cost efficiency measures. BRIT has proved its resilience during testing times and has emerged stronger than ever recording volume growth of 21.5% and 580bps EBITDA margin expansion led by benign input costs, operating leverage, lower product discounts, efficiency in production, zero stock returns and focus on most profitable brands/sku’s.
We value the stock at 46xSep-22 EPS and arrive at SOTP based target price of Rs4316. Retain Buy
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