Skip to main content

Short Term Fundamental Call- Britannia Industries Ltd.

Please find below mentioned short term fundamental stock for delivery purpose.

 

Company

CMP

Target

BSE Code

NSE Code

 Britannia Industries Ltd.

3446

3600

500825

BRITANNIA

 

Britannia Industries is one of India’s leading food companies with a 100 year legacy and among the most trusted food brands. Britannia’s product portfolio includes Biscuits, Bread, Cakes, Rusk and Dairy products including Cheese, Beverages, Milk and Yoghurt. Britannia products are available across the country in close to 5 million retail outlets and reach over 50% of Indian homes. Mr. Nusli Wadia is the Chairman of the company whereas Mr. Varun Berry is the MD of the company. Promoters’ holding is ~51% whereas LIC is the largest non-promoter shareholder (6%). Market cap of Britannia is Rs 82,270 cr.
 

Investment rationale

 

Rich history, prudent management & strong performance: Britannia is part of Wadia group that has rich business history stretching over 250 years. Mr. Varun Berry joined as Chief Operating Officer in 2013 and since then in past 7 years Britannia’s topline has almost doubled whereas bottomline shown ~4x growth. Company has been constantly gaining market share during the same period from Parle to become the largest player in biscuit segment.

 

Performance likely to improve going forward: After minor growth in past 3 quarters, company started Q4FY20 on positive note with healthy growth in first 2 months of Q4FY20. Despite being hit by lockdown in the last month of the quarter company reported 2.5%/4.1%/25.9% growth on revenue/EBITDA/PAT. Management estimates 7-10% loss of lockdown on topline and bottomline. Cost efficiency drive has resulted in minor rise EBITDA margins. Commodity prices are moderating at global level. We believe the growth that had picked in first 2 months of Q4FY20 is likely to further improve resulting in better Q1FY21.

 

Robust performance in lockdown: After initial shock of the lockdown, the Britannia was amongst the first to recover in category and also gained market share from other players. Company witnessed a revenue growth of 20% in April 20 & 28% in May 20 versus the corresponding months in the previous year.

 

Outlook and valuation: Rising distribution channels, moderation in commodity prices, improvement in cost efficiencies and focused marketing campaigns are likely to aid in yielding better results in coming quarters. At current price, the stock trades at 1-yr forward P/E multiple of 49.3x.​ 

 

Duration of recommendation: Short to Medium term.

Labels:

Comments

Post a Comment

Thanks for comments

Popular posts from this blog

Mastek is a provider of vertically-focused enterprise technology solutions.

Dear investor, Please find below mentioned short term fundamental stock for delivery purpose.   Company CMP Target BSE Code NSE Code Mastek Ltd. 401 430 523704 MASTEK Fundamental   Market Cap:    980.70  Cr. Current Price:    401.30 52 weeks High / Low    476.00  /  165.70 Book Value:    323.45 Stock P/E:  7.80 Dividend Yield:  1.99  % ROCE:  18.67  % ROE:  15.06  % Sales Growth (3Yrs):  25.16  % Listed on  BSE  and  NSE Company Website Face Value:    5.00 PEG Ratio:  0.54 Promoter holding:  45.09  % Pledged percentage:  57.00  % Debt:    333.18  Cr. Price to Earning:  7.80 EPS:    45.18 Net profit:    108.86  Cr. Profit growth:  24.44  % Profit growth 7Years:  25.14  % Net profit preceding 12months:  102.26  Cr. Profit growth 3Years:  95.59  % D...
Post a Comment
Read more

The 65th Annual General Meeting of the Shareholders of the state Bank of India

The 65 th  Annual General Meeting of the Shareholders of the Bank is scheduled to be held on Tuesday, 14 th  July 2020, 11.00 a.m. at “ State Bank Auditorium”,  State Bank Bhavan Complex, Madame Cama Road, Mumbai – 400021 (Maharashtra) to discuss and adopt the Balance Sheet and the Profit Loss Accounts of the Bank made upto 31 st  March, 2020. If the conditions are not conducive and the local authorities do not permit to hold physical Annual General Meeting, the Meeting will be held through Video Conferencing (VC)/Other Audio Visual Means (OAVM).  The AGM notice dated 05.06.2020 For further details, please refer to the following link: https://www.sbi.co.in/web/ investor-relations/agm-2015- notice  –  then click on ‘65 th AGM’
Post a Comment
Read more

Who can become a PoSP agent?

Who can become a PoSP agent? With quick and easy registration, training, and certification processes, becoming a PoSP agent has never been simpler. Anyone can become a PoSP agent after being certified. No matter what you do in daily life, with a little skill, you can sell insurance, protect people financially, and earn good incomes with zero investments from your end. Having said that, here are some professions that would be ideally suited: Small business owners who meet regularly with customers Those who have their own individual insurance business Retired bankers Financial consultants Mutual Fund distributors How I can join NJ Insure? The following are the minimum requirements to join NJ Insure as a PoSP agent: Resident of India Attained 18 years of age Passed SSC or equivalent certification (matriculation) PAN Card Aadhar Card Bank account When I can start selling products? As soon as you have registered on the NJ Insure app, you may begin your training for the PoSP test...
Post a Comment
Read more