BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Britannia Industries Ltd.’s reported another quarter (Q3 FY22) of good volume (in core) trajectory amid concerns on rural slowdown (overall) and inflationary raw material.
The company continues to benefit from strong brand positioning, direct distribution expansion and execution edge. We note price hikes for Britannia are a combination of higher MRPs and lower grammage; to that extent, the unit / packs growth would have been higher.
We believe, it (now) faces challenges to find headroom to invest in new categories amid pressure in core margins.
We believe the consensus was generous in previous re-rating cycle (narrative of total foods company pre-Covid-19) but will now require more concrete evidence.
Going forward, success of (at least few) new segments – salty snacks, wafers, croissants – and ramp-up of adjacent categories – dairy, rusks, cakes and now Milk Bikis in biscuits – are imperative.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.