Dolat Capital is bullish on Britannia Industries has recommended buy rating on the stock with a target price of Rs 4097 in its research report dated July 18, 2020.
Dolat Capital's research report on Britannia Industries
Britannia’s revenue, EBITDA and APAT were ahead of our estimate. Domestic volume growth at 21.5% was a beat. The company has reported highest revenue growth and margins at least in past 10 years. With ramp up in production, strong supply chain and distribution initiatives and focused marketing campaigns, the company was able to post unprecedented revenue growth. New product launches and innovations continues to remain the company’s focus. We believe its strategy to grow and improve profitability by increasing in-house manufacturing, launching new value-added products, and controlling operational overheads are likely to yield results.
Outlook
We have upward revised our FY21E and FY22E EPS estimate to Rs 81.2 and Rs 82.2 respectively. We value the stock at 50x FY22E EPS, to arrive at a TP of Rs 4,097. Maintain Buy (Buy on dips).
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