Prabhudas Lilladher is bullish on Britannia Industries has recommended buy rating on the stock with a target price of Rs 3744 in its research report dated June 03, 2020.
Prabhudas Lilladher's research report on Britannia Industries
Even as BRIT suffered revenue and PAT impact of 7-10% for 4QFY20 due to COVID, AMFY21 has shown 24% topline growth due to speedy action taken by the company to improve production, product availability and distribution efficiency. We believe BRIT will emerge stronger post COVID as strong brands, distribution, more in-house consumption and focus on product hygiene will enable sustain double digit sales growth. BRIT is in a sweet spot as benign input costs (RPO, Milk and Wheat) and strong volumes will enable 170bps margin expansion over FY20-22 despite higher cost of fright and other COVID related expenses.
Outlook
Retain BUY with SOTP based target price of Rs3744 (45xFY22 Standalone).
For all recommendations report, click here
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