Bajaj Electricals, Britannia, ABB, Thermax, Birla Corp, Jyothy Labs, Fine Organic, Alkyl Amines Q4 Review

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HDFC Securities Institutional Equities

Britannia Industries - Adjacencies maintain growth momentum

Britannia Industries Ltd.’s Q4 FY25 results were a mixed bag, coming in below estimates on volume growth (3.5% vs our estimate of 5%) and surprising us on the profitability front owing to curtailment of ad spends and cost efficiencies (other expenses down 8% YoY).

Management remains focused on sustaining margins while being price competitive against regional and national players. Additionally, management highlighted that wheat deflation is not expected despite improved supply owing to higher MSP (+7%).

We maintain our Add rating on Britannia with a target price of Rs 5,300/share (45 times its FY27 consolidated EPS, in line with its five-year average PE), with revenue/Ebitda/PAT CAGRs of 10/13/14% for FY25-FY28E.

In our view, the growth will be driven via-

1. aggressive distribution expansion,

2. focus on innovation and premiumisation in adjacencies, and

3. increasing consumer preference for Rs 10 versus Rs 5 stock keeping units.

ABB India - Muted performance

ABB India Ltd. reported a weak quarter with revenue/Ebitda/PAT miss by 7/5.2/4.9% respectively. The Ebitda margin stood at 18.4% (8.1/-110.6bps YoY/QoQ). ABB’s Q1 CY25 order inflow stood at Rs 37.5 billion (+4.0/- 39%YoY/QoQ), the backlog stood at Rs 99.6 billion, providing visibility for the next six quarters.

ABB commentary on CY25 order inflows growth was guarded on the back of strong base, slowdown in process automation orders (project deferrals) and uncertain macro/recent events. ABB is focusing on both organic and inorganic growth to enhance market presence.

We have recalibrated our estimates to factor in lower order intake. We increase our target price to Rs 5,965/share (rolled over to 60x Mar-27 EPS). Given the limited upside, we maintain Add.

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