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Shares of Britannia Industries Ltd. declined over 1% on Thursday, March 12, even as brokerage firm Antique initiated coverage on the stock.
Antique initiated coverage with a "buy" rating on Britannia with a price target of ₹7,000 per share, an upside potential of 18.2% from its previous close.
Britannia Industries offers a compelling medium-term investment opportunity within the FMCG space.
The analyst said this conviction stems from:
Antique values the company at 50 times its estimated price-to-earnings ratio for financial year 2028, which is a 16% premium to its 10-year average.
Britannia reported a steady set of earnings for the third quarter.
Its standalone net profit increased ₹682.1 crore from ₹582.3 crore in the previous year. Its revenue increased 8.2% to ₹4,969.8 crore.
Its EBITDA was up 16% at ₹980.3 crore and its EBITDA margin expanded to 19.7% from 18.4% in the year-ago period.
Its consolidated net profit was up 17% at₹ 682 crore.
On a consolidated basis, its sales stood at ₹4,885 crore in the third quarter, up 9.5% from the previous year.
Of the 40 analysts who have coverage on the stock, 31 have a 'buy' rating, seven have a 'hold' rating and two have a 'sell rating,
Shares of Britannia India were down 1.3% at ₹5,846 apiece. The stock has declined 6.5% in the past six months.
Also Read: Eternal, Swiggy shares slide up to 5% after LPG shortage hurts restaurant operations
Antique initiated coverage with a "buy" rating on Britannia with a price target of ₹7,000 per share, an upside potential of 18.2% from its previous close.
Britannia Industries offers a compelling medium-term investment opportunity within the FMCG space.
The analyst said this conviction stems from:
- Premiumisation within the core biscuits business.
- Scaling of other categories which have higher margins.
- Distribution expansion in underpenetrated and markets coupled with GST
- and stable raw material prices.
Antique values the company at 50 times its estimated price-to-earnings ratio for financial year 2028, which is a 16% premium to its 10-year average.
Britannia reported a steady set of earnings for the third quarter.
Its standalone net profit increased ₹682.1 crore from ₹582.3 crore in the previous year. Its revenue increased 8.2% to ₹4,969.8 crore.
Its EBITDA was up 16% at ₹980.3 crore and its EBITDA margin expanded to 19.7% from 18.4% in the year-ago period.
Its consolidated net profit was up 17% at₹ 682 crore.
On a consolidated basis, its sales stood at ₹4,885 crore in the third quarter, up 9.5% from the previous year.
Of the 40 analysts who have coverage on the stock, 31 have a 'buy' rating, seven have a 'hold' rating and two have a 'sell rating,
Shares of Britannia India were down 1.3% at ₹5,846 apiece. The stock has declined 6.5% in the past six months.
Also Read: Eternal, Swiggy shares slide up to 5% after LPG shortage hurts restaurant operations
