Buy Britannia Industries, target price Rs 4120: Motilal Oswal

Motilal Oswal has buy call on Britannia Industries with a target price of Rs 4120. The current market price of Britannia Industries Ltd. is Rs 3376.

Britannia Industries Ltd., incorporated in the year 1918, is a Large Cap company (having a market cap of Rs 80352.46 Crore) operating in FMCG sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 3248.17 Crore, down -7.00 % from last quarter Total Income of Rs 3492.61 Crore and up 6.57 % from last year same quarter Total Income of Rs 3047.86 Crore. Company reported net profit after tax of Rs 452.62 Crore in latest quarter.


Investment Rationale
Immense structural opportunity, remarkable track record, RoEs of over 40% superior to most consumer peers, and an attractive riskreward ratio on FY23E earnings, after its recent underperformance, leads the brokerage to upgrade BRIT to a Buy.

Promoter/FII Holdings
Promoters held 50.6 per cent stake in the company as of Dec 30, 2020, while FIIs held 17.7 per cent, DIIs 10.7 per cent and public and others 21.1 per cent.