BRITANNIA

BRITANNIA

31.01.2022 - Macquarie on Britannia Maintain Neutral CMP 3509 Target 4000

CLSA ON BRITANNIA (CMP: 3,681) MAINTAIN OUTPERFORM TARGET: 3,850 - 18.08.2021
Growth Levers Falling In Place
Market Share Focus To Pay Off For Co
Annual Rpt Highlights Focus On Cost Efficiency, Pdct Innovation, Distribution Footprint
• In Biscuits, Co Focussing On Localised Strategies For Large Brands
• FCF Generation For FY21 Was Robust At *1,600 Cr Despite Capex
• Overall ICDs Reduced YoY To 1,000 Cr,
But Group Co ICDs Expanded To *790 Cr

MAINTAIN OUTPERFORM TARGET: 3,850

CLSA ON BRITANNIA INDUSTRIES  - 18.08.2021

Maintain Outperform, Target at Rs 3850/sh

• Market-share gain focus continues

• Focus on adjacent categories

• Strong FCF, balance-sheet strength;

* inter-group ICD exposure remains

• Multiple growth levers ahead

BRITANNIA

BRITANNIA

CLSA ON BRITANNIA : 03.08.2021

• Strategy of volume over margin aided top line and drove beat
• Price hikes on the rise; focus to grow margin higher than in FY20
• Normalcy, focus on scaling adjacent operations; PLI boosts prospects
• Better pricing should help margin; normalcy expected to aid diversification

CITI ON BRITANNIA : 03.08.2021

• Maintain BUY, Target at Rs 3,975/share
• Good operational beat on very low expectations
• Britannia has been one of the worst performing consumer names YTD
• See room for relative valuation gap to bridged

JEFFERIES ON BRITANNIA : 03.08.2021

* Jefferies upgrades Britannia to BUY, target raised to Rs 4,150/sh
* While Mărgin Has Started Normalising, Revenue Trend Better In Q1
• Focus Remains On Growth And Gross Margin Is Close To Bottoming Out
* May See Product Price Hikes In Coming Quarters
* Stock Appears Attractive At Current Levels
* UPGRADE BUY TARGET: 4,150 (PREV TGT: 3,800)

MACQUARIE ON BRITANNIA : 03.08.2021

* Macquarie has a neutral call on Britannia
* MAINTAIN NEUTRAL TARGET: 3,600
* Co Intends To Take Price Hikes To Offset Cost Pressures
* Await Details On Its Strategy To Offset The Input Cost Pressures
* Look To Gain Clarity On Competitive Situation On Ground

CITI ON BRITANNIA : 03.08.2021

* Citi has a Buy call as it believes co reported operational beat in Q1
• Good Operational Beat On Very Low Expectations
* EBITDA Is Ahead Of Our/Consensus Forecasts
* Room For Relative Valuation Gap To Be Bridged
* MAINTAIN BUY TARGET: 3,975

CLSA ON BRITANNIA : 03.08.2021

* CLSA maintains Underperform call on Britannia, sees limited pricing to help co gain share
* MAINTAIN UNDERPERFORM TARGET: 3,625
* Margin Pressure On Expected Lines; Better Topline Aided Overall Delivery
* Estimate Co To Have Registered Low Single digit Volume Growth For Quarter
• See Limited Pricing To Help Co Gain Share