Reviews

BRITANNIA INDUSTRIES LTD.

Ticker : 500825
FV: Rs. 1
52-Week H/L: Rs. 3472.05/2610.03

We had recommended Britannia Industries in vol. 35, issue no. 11 (dated Jan 7, 2019) when the scrip was trading at Rs 3125.55. Our recommendation was backed by factors like expected new innovative product launches and planned capex of Rs 500 crore in FY19. In Q4FY19, the company’s total income stood at Rs 2860.75 crore as against Rs 2581.93 crore, registering an increase of 10.79 per cent YoY. The company’s net profit stood at Rs 294.27 crore, up 11.82 per cent YoY as against Rs 263.16 crore. The company witnessed a slowdown in recent months which is expected to be neutralised on account of favourable monsoon forecast and stable government post elections. The company will look to scale up the new categories launched. The company has also set up SBUs (strategic business units) for Adjacent Bakery, dairy, and international business. Thus, we recommend a HOLD on the stock.