Nomura has reiterated its ‘Neutral’ rating on Britannia, setting a target price of ₹5,800, indicating a potential 7% upside from the current market price (CMP) of ₹5,404.95. Key takeaways from Britannia’s Q2 performance include:
- Volume Growth: Volume growth was around 8%, below Nomura’s estimates of approximately 10-11%.
- Pricing: Pricing declined by around 3.5%, in line with expectations.
- Operating Profit Margin (OPM): OPM contracted by 290 basis points year-on-year (and 95 basis points quarter-on-quarter) to 16.8%, falling short of the estimated 20.2%.
- EBITDA: EBITDA declined by 10.2% year-on-year, missing the forecasted growth of +11.8% year-on-year.
Disclaimer: This information is for informational purposes only and does not constitute financial advice.
