Britannia share price surges on back of good Q1 numbers and price hike news – Check target price here

The shares of Britannia jumped 3.5 per cent to Rs 3540 per share in the early trading hours on Monday amid healthy first-quarter numbers and the company taking a price hike going forward. 

The stock trading between 3400-3450 per share levels in the last five sessions, however, breached the Rs 3500 per share levels today. It had hit Rs 4004 per share, its life high on August 10, 2020.

Britannia reported weak numbers in terms of margin down 16 per cent from 21 per cent year-on-year. However, it posted good numbers on other fronts, as revenue stood at Rs 3420 crore versus Rs 3080 crore Zee Business estimate, while profit at Rs 387 crore as against Rs 410 crore as expected.

Moreover, the company reported positive volume growth by 1 per cent as compared to the 12 per cent fall estimated in Zee Business preview. Moreover, the management of Britannia has also declared in its results update that the company is going to take a price hike going forward.

The stock at around 10:40 am, was trading 1 per cent higher to Rs 3457 per share on the BSE, as against a 0.58 per cent rise in the S&P BSE Sensex.

Citi has a Buy call as it believes the company reported an operational beat in Q1 on low expectations and room for a relative valuation gap to be bridged. It raised a price target of Rs 3975 per share.

Macquarie has a neutral call on Britannia with a price target of Rs 3600 per share. The brokerage awaits details on its strategy to offset the input cost pressures and look to gain clarity on the competitive situation on the ground.

While CLSA maintains Underperform call on Britannia, sees limited pricing to help FMCG company to gain share. It keeps marginal expectation in price target to Rs 3625 per share, estimating that the company to have registered low single-digit volume growth for the quarter.