Brokerages retained their bullish rating on the stock of Britannia Industries Ltd. while revising their target price higher after the country's second-largest biscuit maker reported better-than-expected first quarter earnings.
The biscuit maker posted 6 percent growth in earnings before interest, tax, depreciation and amortisation (EBITDA), and 4 percent jump in profit after tax in the April-June quarter.
According to broking firm Nomura, the company extending its distribution footprint to reach more customers and stronger innovation will provide a good base for the earnings trajectory going forward. The broking firm forecasts a 20 percent earnings growth over the next three years. It said Britannia will also benefit from “impending recovery in consumer sentiment.”
Axis Capital too is very positive on the stock on fading inflation concerns. It said the GST-led efforts towards an organised management are steering the company's performance, which will be beneficial for Britannia in the near future.
Ratings Check
- Nomura maintains ‘Buy'; hikes target price to Rs 4,760 from Rs 3,853
- Axis Capital maintains ‘Buy'; hikes target price to Rs 4,500 from Rs 4,175
- JPMorgan maintains ‘Overweight' and target price of Rs 3,917
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