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.
Motilal Oswal Report
Britannia Industries Ltd. has been aided by a confluence of positive factors in H1 FY21, such as high in-home consumption (biscuits constitute 75–80% of sales), reduction in advertisement spends, decline in material costs, and low promotional spends (owing to strong demand).
These are likely to drive the strongest topline growth since FY12 (15.2% in FY21E) and the highest profit after tax growth since FY16 (35.2% in FY21E).
Sales momentum is tapering after an extraordinary spurt of approximately 27% in Q1 FY21.
Moreover, extraordinary earnings growth in FY21 presents a significant hurdle from an FY22/FY23 perspective as none of these factors present a structural positive.
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