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You are here : IndiaNotes >> Research & Analysis >> Companies >> Britannia Industries Ltd. >> Research

Britannia Ind: Delivers a good quarter in the face of challenging market environment; Hold

Way2wealth | 10 Aug, 2017  | Follow Author | Add to my Favourites 
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Standalone Financials

- Revenue from operations grew by 7.4% Y-O-Y to Rs2,153 crs. in Q1FY18.

- EBIDTA grew by 4.8% Y-O-Y to Rs313 crs. in this quarter and with margins marginally contracting by ~20bps to14.8%.

- PAT was marginally lower by 0.8% on a Y-O-Y basis at Rs209crs.

Consolidated Financials

- Revenue from Operations grew by 6.4% Y-O-Y Rs2,300.9 crs in Q1FY18.

- EBIDTA grew by 3.9% Y-O-Y to Rs328.5crs in Q1. Margins contracted marginally by ~30 bps to 14.5%. Company continued to witness pressure on gross margins on account ofdouble digits inflation in commodities except flour.

- PAT de-grew by 1.4% on a Y-O-Y basis to Rs216 crs.

Outlook & Valuation:

The environment currently continues to remain challenging but the company’s various initiatives have helped it to grow in this environment as well. The company is confident with its market strength and its strong product portfolio. The company has outlined its focus areas to drive profitable growth in the future. With the GST rollout, the company will see some traction in the long-term as organised players see market share gains. The company plans to launch a new category every year, and leverage on new technologies as well as geographies to drive growth. This space is seeing a shift from the value segment towards the premium segment and we believe Britannia is well poised for riding this wave. At the CMP of Rs4119.1/- the stock trades at a PE of 50.1x & 44.7x its FY18E & FY19E estimated EPS of Rs82.3/- & Rs92.1/- respectively. We recommend investors to HOLD the stock.

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4,758.20 +19.50
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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.

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