Reduce Britannia Industries, target price Rs 4,850: Emkay Global

Emkay Global Financial Services has a Reduce call on Britannia Industries with a target price of Rs 4,850. The current market price of Britannia Industries is Rs 4,992.3 . Britannia., incorporated in 1918, is a Large Cap company with a market cap of Rs 120667.79 crore, operating in the FMCG sector.

Britannia Industries' key products/revenue segments include Food Products, Other Operating Revenue, Scrap, Royalty Income for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 4655.08 crore, down -1.24% from last quarter Total Income of Rs 4713.57 crore and up 8.08% from last year same quarter Total Income of Rs 4306.89 crore. The company has reported net profit after tax of Rs 584.34 crore in the latest quarter.

The company's top management includes Mr.Nusli N Wadia, Mr.Keki Dadiseth, Mr.Avijit Deb, Ms.Tanya Dubash, Mr.Keki Elavia, Dr.Ajay Shah, Dr.Y S P Thorat, Mr.Ness N Wadia, Dr.Ajai Puri, Mr.N Venkataraman, Mr.Rajneet Singh Kohli, Mr.Varun Berry, Mr.Pradip M Kanakia. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 24 Crore shares outstanding.

Investment Rationale
Emkay Global sees that the need for an uptick in growth and margin is largely not being met in Q4, while companies are focusing on sequentially better volume growth and improving earnings. Management commentary would be key for: a) demand, b) commentary on competition which necessitated promotion intensity (affects price growth; needed to arrest downtrading and hold market share), and c) inflation. The brokerage sees weak earnings to have a bearing on valuations, which so far have relative support.

Promoter/FII Holdings
Promoters held 50.55 per cent stake in the company as of 31-Dec-2024, while FIIs owned 16.46 per cent, DIIs 12.17 per cent.