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Britannia share price factors in improved margin outlook; analysts say better placed than peersMost analysts have maintained a bullish view following Britannia Industries' Q4 results and are now awaiting further details from the company's analyst conference call scheduled for Monday.By Meghna Sen   May 9, 2025, 9:23:55 AM IST (Published)2 Min ReadShares of food product company Britannia Industries Ltd. will be reacting to its January-March quarterly results, which came in above estimates.

For the quarter, Britannia reported a net profit of ₹559 crore, surpassing CNBC-TV18’s poll estimate of ₹505 crore. Revenue stood at ₹4,432 crore, compared to expectations of ₹4,356 crore.

EBITDA came in at ₹805 crore, above the estimated ₹740 crore, while margins stood at 18.2%, beating the projected 17%.

However, volume growth of 3% fell short of expectations, which were in the range of 5–6%.

Britannia's gross margins were at 40.1%, lower than the 44.9% recorded in the same quarter last year.

What brokerages recommend

Global brokerage firm CLSA has maintained an ‘Outperform’ rating on Britannia Industries, with a price target of ₹5,391. The target is based on a blend of discounted cash flow (DCF) and the 10-year average one-year forward price-to-earnings (PE) multiple, with equal weighting.

CLSA said that it is awaiting further details from Britannia’s analyst conference call, scheduled for Monday.

According to the brokerage, key risks include weak consumer sentiment affecting product demand, a highly competitive market environment, and elevated input cost inflation.

Emkay Global has maintained a 'Reduce' rating on Britannia due to limited upside, but raised its price target by 13.4% to ₹5,500 (from ₹4,850 earlier), citing better-than-expected Q4 results.

With pricing hikes in place, Emkay believes Britannia is now better positioned than its peers. The brokerage also considers the improving margin outlook and the company's better competitive position.

The stock has risen 11% over the past three months on the back of an easing raw material price situation.

Emkay now values the stock at a one-year forward P/E of 52.5 times, near its five-year average +1 standard deviation of 52 times.

While maintaining a 'Buy' rating, Nuvama Institutional Equities said that it will revisit its estimates and price target following the earning conference call scheduled on May 12, 2025.

Of the 39 analysts that have coverage on Britannia Industries, 23 of them have a 'Buy' recommendation, nine of them have a 'Hold' rating, while seven have a 'Sell' recommendation on the stock.

Shares of Britannia Industries Ltd. ended 0.59% higher on Thursday at ₹5,382.50. The stock is up over 12% so far in 2025.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsBritanniaBritannia IndustriesBritannia shares