Britannia Industries Q2 results: Global brokerages see over 18% upside in next 12 months

Global brokerage firms maintain their rating and target price on Britannia Industries post September quarter results.

The most aggressive target price of Rs 4400 on Britannia Industries was put out by Macquarie that translates into an upside of above 18 per cent from Rs 3,718 recorded on 8 November.  

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The biscuit maker has reported a 22.8 per cent YoY decline in its consolidated profit at Rs 382 crore for the quarter ended September 30, 2021, which was below Zee Business analysts’ expectations of Rs 420 crore.

It had posted a profit of Rs 495 crore in the year-ago quarter. Its revenue from operations grew 5.5% YoY to Rs 3,607 crore as against Rs 3,419 crore posted last year.

EBITDA declined by 17.3% YoY to Rs 558 crore as against Rs 675 crore posted last year. The food and beverage company's margins also declined to 15.5% in Q2FY22 as against 19.75% posted in Q2FY21.

We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:

Nomura: Neutral| Target Rs 4000

Nomura maintained its neutral rating on Britannia Industries post Q2 results with a target price of Rs 4000.

Demand is holding up well, and margins are not so much. The stock currently trades at 44x Mar-23F EPS. Key risks include slower volume growth in biscuits, said the note.

Jefferies: Buy| Target Rs 4150

Jefferies maintained its buy rating on Britannia Industries post Q2 results with a target price of Rs 4150.

Credit Suisse: Neutral| Target Rs 3725

Credit Suisse maintained its neutral rating on Britannia Industries post Q2 results with a target price of Rs 3,725.

JP Morgan: Overweight| Target Rs 4000

JpMorgan maintained its overweight rating on Britannia Industries post Q2 results with a target price of Rs 4,000.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)