Britannia Industries: Munch More Cookies
Britannia Industries, which scaled to its all-time high of Rs 3,435 a share a fortnight ago, has corrected to Rs 3,000 levels. The Street is bullish on the company; analysts at Sharekhan and IIFL have given price targets of Rs 3,650-3,960. Among key reasons for the bullishness is the firm’s ability to post industry-beating growth and identify new opportunities. Britannia’s strategy to grow its business profitably by improving supply chain, cutting costs, focusing on premium products and expanding reach, has worked wonders for it. Declining commodity prices have also provided support. During FY13-15, while sales is up 28 per cent to Rs 7,176 crore led by double-digit volume growth, PBIDT margin is up from 7.5 per cent to 11.25 per cent in FY15. Thus, net profit has risen 167 per cent. Even in the June 2015 quarter, margin was up at 15.2 per cent and profit surged 56 per cent year-on-year.