Britannia Industries Ltd., incorporated in the year 1918, is a Large Cap company (having a market cap of Rs 84415.91 Crore) operating in FMCG sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 3463.93 Crore, up 8.45 % from last quarter Total Income of Rs 3193.94 Crore and down -1.43 % from last year same quarter Total Income of Rs 3514.35 Crore. Company reported net profit after tax of Rs 386.80 Crore in latest quarter.
Investment Rationale
The stock trades at an inexpensive valuation of 39.7x FY23E given a) ~31% EPS growth in FY21, b) a strong track record of ~20%/27% EPS growth in the preceding 5/10 years ended FY20, c) one of the best-of-breed structural growth opportunities in the sector, and d) best-of-breed RoE of over 40%. This is at a substantial discount to its historical three-/five-year average of 46x/48x and average domestic Staples peer valuations. The brokerage maintains BUY, with TP of INR4,370/share, targeting 46x Sep’23E EPS (three year historical average).
Promoter/FII Holdings
Promoters held 50.6 per cent stake in the company as of June 30, 2021, while FIIs held 18.4 per cent, DIIs 11.2 per cent and public and others 19.9 per cent.
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