Moneycontrol PRO
UPCOMING EVENT:Attend Traders Carnival Live. 3 days 12 sessions at Rs.1599/-, exclusive for Moneycontrol Pro subscribers. Register now!

Buy Britannia Industries: target of Rs 4740: Sharekhan

Sharekhan is bullish on Britannia Industries has recommended buy rating on the stock with a target price of Rs 4740 in its research report dated September 21, 2021.

September 22, 2021 / 01:29 PM IST
  • bselive
  • nselive
Todays L/H

Sharekhan's research report on Britannia Industries

Negative working capital and higher profitability helped generate operating cash flows of Rs. 5,740 crore over FY18-21. Britannia has steadily expanded capacity (at a capex of Rs. 240-400 crore p.a.) and rewarded shareholders with high dividend pay-out over the last two years. Inter-corporate deposits to group companies (key overhangs for the stock) stood at Rs. 790 crore in FY2021, which reduced to Rs. 470 crore in Q1FY2022. Sustained innovation, investing in the front-end and back-end for growth of key categories, a product portfolio that straddles the pyramid and distribution expansion remain key growth levers. Driving efficiencies through supply chain management and higher in-house products would lead to sustained margin expansion.


We maintain a Buy on Britannia Industries with a revised price target of Rs. 4,740. Stock trades at 43.5x/37.6x its FY2023/24E EPS, at a discount to larger peers.

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: Sep 22, 2021 01:29 pm

stay updated

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