After a muted performance in the June 2022 quarter, both global and domestic brokerage firms, majorly suggest investors to remain light on .
The biscuit and bakery products maker reported a 13.37 per cent year-on-year (YoY) drop in consolidated net profit at Rs 337.44 crore for the June quarter compared with Rs 389.55 crore in the same quarter last year.
The profit figure missed Rs 366 crore bottom line that analysts anticipated in an ET NOW poll. Consolidated operating profit came in at Rs 450 crore for the quarter, but operating marginally fell to 12.15 per cent.
Total revenue for the reported by the company quarter rose 9 per cent on a yearly basis to Rs 3,700.96 crore from Rs 3,403.46 crore in the corresponding quarter last year.
Global brokerage firm CLSA maintained its underweight rating on Britannia Industries with a target price of Rs 3,790 which is much closer to its previous close of Rs 3,777.
"The FMCG major missed expectations on sales with negative volume growth. The promising outlook is already priced in. Inflation continues to hurt the bakery industry," said the brokerage firm.
Another foreign broker Morgan Stanley kept its overweight stance intact on the stock with a target price of Rs 3,892 despite the muted results by the FMCG major.
"Earnings were below our consensus estimates," said the brokerage. "Improving maring outlook augurs well for the earnings and stock performance. Management sounded positive on the growth outlook it said."
Homegrown brokerage firm said that success of new segments and ramp-up of adjacent categories is imperative. The outlook on this seems better, maintaining a hold rating on the stock with a target price of Rs 3,775.
Following weak revenue and inflationary pressures on margins, it sees faster-than- expected revenue growth in core biscuits as the key upside risk, whereas sustained weakness in consumption demand is the key downside risk.
Another domestic brokerage Axis Securities also has a hold rating for Britannia Industries with a target price of Rs 3,950 as its results were below consensus estimates but the company is targeting to save 3 per cent cost on operational front.
The management indicated raw material prices are at their peak and expect them to ease further in the coming quarters, it said. "It further indicated that a 6-7 per cent price hike is on the cards to mitigate the impact of raw material inflation."
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The biscuit and bakery products maker reported a 13.37 per cent year-on-year (YoY) drop in consolidated net profit at Rs 337.44 crore for the June quarter compared with Rs 389.55 crore in the same quarter last year.
The profit figure missed Rs 366 crore bottom line that analysts anticipated in an ET NOW poll. Consolidated operating profit came in at Rs 450 crore for the quarter, but operating marginally fell to 12.15 per cent.
Total revenue for the reported by the company quarter rose 9 per cent on a yearly basis to Rs 3,700.96 crore from Rs 3,403.46 crore in the corresponding quarter last year.
Global brokerage firm CLSA maintained its underweight rating on Britannia Industries with a target price of Rs 3,790 which is much closer to its previous close of Rs 3,777.
"The FMCG major missed expectations on sales with negative volume growth. The promising outlook is already priced in. Inflation continues to hurt the bakery industry," said the brokerage firm.
Another foreign broker Morgan Stanley kept its overweight stance intact on the stock with a target price of Rs 3,892 despite the muted results by the FMCG major.
"Earnings were below our consensus estimates," said the brokerage. "Improving maring outlook augurs well for the earnings and stock performance. Management sounded positive on the growth outlook it said."
Homegrown brokerage firm said that success of new segments and ramp-up of adjacent categories is imperative. The outlook on this seems better, maintaining a hold rating on the stock with a target price of Rs 3,775.
Following weak revenue and inflationary pressures on margins, it sees faster-than- expected revenue growth in core biscuits as the key upside risk, whereas sustained weakness in consumption demand is the key downside risk.
Another domestic brokerage Axis Securities also has a hold rating for Britannia Industries with a target price of Rs 3,950 as its results were below consensus estimates but the company is targeting to save 3 per cent cost on operational front.
The management indicated raw material prices are at their peak and expect them to ease further in the coming quarters, it said. "It further indicated that a 6-7 per cent price hike is on the cards to mitigate the impact of raw material inflation."
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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