Britannia Industries share price added more than 2 percent in the early trade on August 2 even after the home-grown food major reported a 29 percent decline in consolidated net profit at Rs 387 crore for the quarter ended June 30. The company had posted a consolidated net profit of Rs 543 crore for the April-June period of the previous fiscal.
Total income during the first quarter stood at Rs 3,464 crore compared to Rs 3,514 crore in the same period of last fiscal, the company said on July 30.
Here is what brokerages have to say about the stock and the company post the June quarter earnings:
Macquarie | Rating: Neutral | Target: Rs 3,600
The research house maintained neutral call as the company intends to hike prices to offset cost pressures. However, details of its strategy to offset the input cost pressures were awaited. The brokerage was looking to gain clarity on competitive situation on ground.
Citi | Rating: Buy | Target: Rs 3,975
The broking house has kept “buy” call on the stock as the company posted a good operational beat on very low expectations. The EBITDA was ahead of Citi’s/consensus forecasts and room for relative valuation gap to be bridged.
CLSA | Rating: Underperform | Target: Rs 3,625
CLSA has maintained “underperform” rating as the margin pressure was along expected lines, while better topline aided overall delivery.
It estimated the company to register low single-digit volume growth for the quarter and see limited pricing to help the company to gain share.
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Motilal Oswal | Rating: Buy
The price of palm oil and crude continued to increase and the company will take a calibrated price increase as the situation normalises.
At 0926 hours, Britannia Industries was quoting at Rs 3,505.85, up Rs 85.80, or 2.51 percent on the BSE.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
With inputs from PTI