BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
After displaying resilience in Q4 FY22 volumes despite steep price hikes, Britannia Industries Ltd.’s Q1 FY23 result was disappointing with a low single-digit volume decline.
With further price increases likely in Q2 FY23 (cumulative 6-7% price hike in H1 FY23), the effective price hike will be ~20% YoY. This might delay the eventual volume recovery, especially in a price sensitive category like biscuits.
Britannia Industries’ Q1 FY23 Ebitda margin was also notably lower than expectations at 13.5% (a level last seen in Q4 FY15).
Even though we estimate FY24 Ebitda margin to recoup to 16%, the company’s valuation is rich at 48.1 times FY24E price/earning given the tepid earnings compound annual growth rate of 11.7% over FY22-24E.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.