Britannia Industries Ltd., incorporated in the year 1918, is a Large Cap company (having a market cap of Rs 83991.98 Crore) operating in FMCG sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 3106.10 Crore, down 7.40 % from last quarter Sales of Rs 3354.35 Crore and up 5.79 % from last year same quarter Sales of Rs 2935.98 Crore Company reported net profit after tax of Rs 452.62 Crore in latest quarter.
Investment Rationale
The brokerage maintains Neutral rating on account of: a) fair valuations (43.7x/39.9x FY22E/FY23E EPS), b) sustained concerns related to elevated group ICDs – currently ~INR7b (v/s INR6b at the end of FY20 when they crossed their own erstwhile stated threshold of INR5b), and c) an uncertain earnings outlook beyond FY21. Its TP of INR 3,830 per share is set at 45x Dec’22E EPS.
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.