Britannia Industries witnessed a 2.8 percent gain in shares at the opening on November 2, following the company’s announcement of its Q2FY24 earnings. By 1:50 pm, the shares were trading 2.61 percent higher at ₹4,512.25.
According to a regulatory filing made after market hours on November 1, Britannia Industries reported a robust 19.55 percent year-on-year increase in net profit, amounting to Rs 586.50 crore for the quarter ending September 2023. Additionally, the company experienced a 1.21 percent growth in revenue, reaching Rs 4,432.88 crore for the same period. Earnings before interest, depreciation, taxes, and amortization (EBIDTA) for Q2FY24 stood at Rs 872.4 crore, indicating a significant 22.5 percent YoY increase.
ANALYSTS’ CALL (REPORTS)
Market analysts are anticipated to update their ratings post the earnings call. Morgan Stanley maintained an overweight rating on Britannia with a target price of Rs 5,013, while Nomura issued a buy call with a target price of Rs 5,500. Nomura analysts noted that while Q2 demand remained challenging, the company’s strong margin delivery persisted. The report highlighted that growth was flat compared to the estimated 3-4 percent, emphasizing the company’s resilience in the face of market fluctuations.
