Britannia Industries Ltd has received a fresh “Buy” recommendation from Nuvama, which has set a target price of Rs 7,240 a share.
Based on the previous closing price of Rs 5,109.50, the target implies a potential upside of 41.70%.
Shares of the packaged foods maker were trading at Rs 5,165.85, up 1.10% from the previous close. The company had a market capitalisation of Rs 1,24,428.95 crore.
Why Nuvama remains positive
Nuvama said growth driven by product innovation under Managing Director Rakshit Hargave has strengthened its outlook on the company.
Several products are ready for launch across categories, including:
- Health-focused savouries.
- Adult nutrition and protein products.
- Dairy products.
- Garlic bread.
- Sourdough bread.
- Cheese.
The brokerage said Britannia is also evaluating selective inorganic opportunities to expand its capabilities.
According to Nuvama, the company plans to step up advertising spending while optimising below-the-line expenses to improve brand engagement and support future growth.
Recovery expected in FY27
The brokerage expects a gradual recovery in FY27 after a muted fourth quarter of FY26.
Before wholesale disruptions and the impact from West Asia, Britannia’s domestic business was growing at around 9-9.5%, according to the management.
Growth trends highlighted by Nuvama included:
- Modern trade growth of 15-16%.
- E-commerce growth of more than 50%.
- E-commerce contributing 6% of domestic sales.
- E-commerce contribution exceeding 12%, excluding low-ticket packs.
Signature brands such as Treat, Jim Jam and Little Hearts expanded at nearly three times the company’s average growth rate.
The wafers, dairy and cakes segments posted double-digit growth.
Nuvama said inflation in wheat and palm oil remains a concern. However, calibrated price increases and grammage adjustments are expected to help manage margin pressure.
Product portfolio
Britannia’s portfolio covers several categories, including:
- Biscuits.
- Bread.
- Cakes.
- Rusk.
- Cheese.
- Milk-based beverages.
Its biscuit brands, including Good Day and Marie Gold, are among the market leaders in India. The company exports products to more than 60 countries.
Quarterly performance
For the quarter ended Q4 FY26, revenue rose to Rs 4,719 crore from Rs 4,432 crore a year earlier, a growth of 6.48%.
Net profit increased to Rs 680 crore from Rs 559 crore, up 21.65% year-on-year.
Over the last five years:
- Revenue has grown at a CAGR of 8%.
- Net profit has grown at a CAGR of 6%.
Key financial metrics
- ROCE: 56%
- ROE: 53.6%
- EPS: Rs 105
- Debt-to-equity ratio: 0.27x
Founded in 1892, Britannia Industries Limited is headquartered in Bengaluru and manufactures bakery, dairy and snack products.
TL;DR:
Nuvama has maintained a Buy rating on Britannia Industries with a target price of Rs 7,240. The brokerage expects FY27 recovery, backed by new product launches, strong e-commerce growth and continued expansion across categories.
AI summary:
- Nuvama has retained a Buy rating on Britannia Industries.
- The brokerage has set a target price of Rs 7,240.
- New products and faster e-commerce growth support the outlook.
- Nuvama expects a recovery in FY27.
- Q4 FY26 net profit rose 21.65% to Rs 680 crore.