Britannia’s Narrative Improving, Increasing Scope For Upside: Motilal Oswal
Britannia biscuits kept in a basket in a shop. (Photo: BloombergQuint)

Britannia’s Narrative Improving, Increasing Scope For Upside: Motilal Oswal

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.’s opportunity for growth is significant, with the overall biscuits category estimated to grow in the mid-single digits.

Furthermore, the opportunity in terms of market share gains is even greater - the company’s market share is only in the mid-30s despite the company being the largest player in the biscuits space.

The broad packaged foods market (estimated at $40–50 billion) presents the strongest structural opportunity in India’s consumption space.

The company’s FY21E revenue of approximately $1.8 billion is a fraction of this addressable market.

The company has also shown signs of a scale-up in the non-biscuit portfolio to ~2% of sales led by cream wafers and milkshakes.

Click on the attachment to read the full report:

Motilal Oswal Britannia Company Update.pdf

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