Shares of Britannia Industries, one of India’s most trusted food brands surged 3.60 percent on Wednesday’s early trades to reach a fresh 52-week high of ₹ 4,874.95 apiece on the National Stock Exchange (NSE). At 12:16 PM, its shares were trading at ₹ 4867.70 apiece.
The FMCG company reported a 10.94 percent increase in its revenue from operations for the latest quarter (Q4FY23) to ₹ 3,892.02 crores, against ₹ 3,508.35 crores reported in the corresponding quarter last year (Q4FY22). Its profit climbed 47.53 percent to ₹ 557.60 crores in Q4FY23, against ₹ 377.95 crores in Q4FY22.
For the financial year ended March 2023, Britannia’s revenue from operations came in at ₹ 15,984.90 crores, up 14.63 percent as compared to ₹ 13,944.67 crores reported in the previous fiscal (FY22). Its net profit increased by 52.79 per cent to ₹ 2,316.32 crore in FY23, against ₹ 1,515.98 crore reported in FY22.
Britannia Industries is a large-cap blue-chip stock with a market capitalization of ₹ 1,13,338 crores. It has a high return on equity of 76.22 percent and an ideal debt-to-equity ratio of 0.85. The company’s shares were trading at a price-to-earnings ratio (P/E) of 48.82 which is significantly higher than the industry P/E of 23.24, indicating that the stock might be overvalued or investors might be willing to pay a higher price for the company’s future earnings.
The company’s promoters hold a 50.55 percent stake in it followed by retail investors with 22.87 percent, foreign institutions with 19.44 percent, mutual funds with 5.26 percent and other domestic institutions with 1.88 percent.
Britannia Industries is a leading food brand in India with a legacy of more than 100 years. It manufactures brands like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold which are household names in India.
Various brokerages see an upside in the stock:
Jefferies has a buy rating on the stock with a target price of ₹ 5,300 apiece. This translates to an upside of 8.88 percent as compared to its share price of ₹ 4,867.70.
Citi has a buy rating on the stock with a target price of ₹ 5,400 apiece. This suggests an upside of 10.94 percent as compared to the company’s share price.
Nomura has a buy rating on the stock with a target price of ₹ 5,425 apiece. This suggests an upside of 11.45 percent as compared to the company’s share price.
Written By Simran Bafna
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