Buy Britannia Industries, target price Rs 4050: Emkay Global

Emkay Global has buy call on Britannia Industries with a target price of Rs 4050. The current market price of Britannia Industries Ltd. is Rs 3680. Time period given by analyst is one year when Britannia Industries Ltd. price can reach defined target.

Britannia Industries Ltd., incorporated in the year 1918, is a Large Cap company (having a market cap of Rs 86898.06 Crore) operating in FMCG sector.

Britannia Industries Ltd. key Products/Revenue Segments include Food Products, Other Operating Revenue, Scrap, Royalty Income, Other Services for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 3630.11 Crore, down -.84 % from last quarter Total Income of Rs 3660.77 Crore and up 11.76 % from last year same quarter Total Income of Rs 3248.17 Crore. Company reported net profit after tax of Rs 369.89 Crore in latest quarter.

Investment Rationale
The strong topline performance with healthy volumes despite grammage cuts is a positive and can drive upsides. The brokerage retains Buy with an unchanged TP of Rs4,050, rolling forward to Mar’24E EPS and marginally reducing the target multiple to 44x factoring higher COE.

Promoter/FII Holdings
Promoters held 50.55 per cent stake in the company as of 31-Dec-2021, while FIIs owned 17.59 per cent, DIIs 11.52 per cent.