Britannia Industries Ltd., incorporated in the year 1918, is a Large Cap company (having a market cap of Rs 89427.17 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
With manufacturing constraints being reported in current times, BRIT is looking to augment its capacity at Odisha and Ranjangaon (MH) plants by putting additional lines. It plans to set up new manufacturing facilities in Tamil Nadu (largest state sales- wise), UP (UP now is 2nd largest market for BRIT), and Bihar. Company targets to achieve Rs 1500 cr capex by FY23 and will gain an incentive of 110% from the Maharashtra government towards the same. The brokerage does think with growing distribution network, penetration into the rural regions esp hindi heartland BRIT is likely to report steady growth over FY21-23E.
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.
