Britannia Q1 Results Review - Strong Volume Growth Visibility: Prabhudas Lilladher

Prabhudas Lilladher Report

We upgrade Britannia Industries Ltd. from Hold to Accumulate and increase FY25/26 EPS estimates by 2.7% led by-

1. high single digit volume growth with double digit exit volume growth in Q1 FY25,

2. Higher profitability due to Ranjangaon unit being considered as ultra-Mega project and production linked incentive gains in Uttar Pradesh and Bihar Units,

3. Sustained traction and 1.25 times growth in rural India than Urban India,

4. Success of innovations and adjacencies in Bakery and Dairy.

Britannia is looking at 5% raw material inflation led by flour, milk and sugar, which might require some price hikes in coming quarters. Innovation pipeline remains strong as Britannia launched pure magic stars, 5050 golmaal butter garlic biscuits even as earlier innovations like Jimjam Pops, Treat and 50-50 Gol Maal sustained traction.

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