Britannia shares rise over 3% after biscuit maker posts in-line Q3 results; should you buy?

Britannia results Q3 2024, Britannia share price NSE: Britannia Industries shares emerged as the top gainer on the Nifty50 index in the opening deals on Wednesday, February 7. The biscuit maker stock gained as much as 3.5 per cent, to hit the day's high of Rs 5,183.9 apiece on the NSE after the Kolkata-headquartered FMCG major registered in-line financial results for the October-December (Q3 FY24) period. The counter settled at Rs 5,085, up 1.56 per cent or Rs 77.95 on NSE.

Britannia Q3 results

Britannia Industries, which owns popular brands such as Good Day, Tiger, NutriChoice, Milk Bikis, and Marie Gold, reported a 40.4 per cent decline in consolidated net profit at Rs 555.66 crore for the third quarter ended December 2023. The company had posted a net profit of Rs 932.40 crore in the October-December quarter a year ago, Britannia Industries said in a BSE filing.

Its net sales during the third quarter of the current fiscal grew 2.2 per cent to Rs 4,191.83 crore. It was at Rs 4,101.49 crore in the year-ago period. The net profit base in the year-ago quarter was higher as the company had gained on the sale of a 49 per cent equity stake held in Britannia Dairy Private to French cheese maker Bel SA.

The company's profit before exceptional items and tax was Rs 761.13 crore, which was 1.62 per cent down from Rs 773.71 crore in the December quarter of FY23. Its revenue from operations in the December quarter was Rs 4,256.33 crore, up 1.41 per cent. Read more 

Here's what Zee Business Managing Editor Anil Singhvi suggests

Britannia futures have support at Rs 4,855; a higher level is at Rs 5,140.

• Results in line with expectations 
• Volume growth strong at five per cent but pricing is down

Britannia Q3 earnings: On expected lines, says JM Financial

JM Financial has maintained a buy call on the counter. Terming the December quarter earnings broadly in line with the estimates with a tad better-than-expected topline, though still soft, JM Financial placed the target price of 5,380, translating to an upside of 7.4 per cent from current levels. The brokerage expects Britannia’s topline and profit growth to remain soft over the near term.

Britannia share price target: Should you buy, sell or hold?

Morgan Stanley has maintained an overweight rating on Britannia. The brokerage has placed the target at Rs 5,013. In addition, Macquarie has continued its neutral rating on the counter with a target of Rs 4,650.

In addition, AK Prabhakar, Head of Research at IDBI Capital, said that the result was not great, but this was expected as FMCG segment growth was not there. "A 10 per cent correction will make it more attractive," the expert added.

(with agency inputs)

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