Reduce Britannia Industries, target price Rs 3400: ICICI Securities

ICICI Securities has reduce call on Britannia Industries Ltd. with a target price of Rs 3400. The current market price of Britannia Industries is Rs 3588.3. 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 89547.61 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 30-09-2021, the company has reported a Consolidated Total Income of Rs 3660.77 Crore, up 5.68 % from last quarter Total Income of Rs 3463.93 Crore and up 4.81 % from last year same quarter Total Income of Rs 3492.61 Crore. Company has reported net profit after tax of Rs 381.62 Crore in latest quarter.

Investment Rationale
While lower ad-spends in FY21 have driven higher profit growth vs revenue growth, FY22 is likely to be a low-profit-growth year. Approach on price increases (inflationary RM) will be key. REDUCE rating (a case of fundamentals vs rest) stays, for now.


Promoter/FII Holdings
Promoters held 50.55 per cent stake in the company as of 30-Sep-2021, while FIIs owned 17.65 per cent, DIIs 11.52 per cent.