Please refer to important disclosures at the end of this report
Britannia Industries Limited (BRIT) is a food company engaged in the
manufacturing of biscuits, cakes and rusks. BRIT has planned to enhance its
profitability, on the back of cost efficiencies programs and seems to continue
leveraging its power brands of biscuits into premium categories, which is helping
it to improve margins. Growth prospects are expected on the back of good
monsoon during the year. To futher boost margins, BRIT has taken several steps
such as increasing in house manufacturing upto 65% (~50% currently), for this
BRIT is looking at a capex of `3.5bn in FY17 for three new units, focusing more
on high margin products (including dairy, bread, rusk and cakes). We believe the
new management has taken all step to expand distribution, cost efficiency and
most importantly increasing market share and also has registered sales CAGR o
12% over FY13-16 in a weak demand environment. The company has reduced
debt and is virtually debt free. The company has grown its profit by 41.86%
CAGR over the last 5 years. The company has reported a healthy return on
equity (ROE) of 49.68% for the last 3 years. Hence Buy.
CMP `3,210
Stock Info
Beta 0.8
Bloomberg Code BRI[email protected]IN
Shareholding Pattern (%)
Promoters 50.7
MF / Banks / Indian Fls 12.5
FII / NRIs / OCBs 19.3
Indian Public / Others 17.4
Abs. (%) 3m 1yr 3yr
Sensex (0.4) 1.6 35.0
Britannia Industries 16.0 (0.5) 250.2
Market Cap (
cr) 38,517
52 Week High / Low 3575/2507
Avg. Daily Volume 17,032
Face Value (
BSE Sensex 27,916
Nifty 8,615
Reuters Code BRIT.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Britannia Industries
Others | FMCG
October 28, 2016
Britannia Industries | FMCG
October 28, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement Britannia Industries
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)