Morgan Stanley has reiterated its ‘Equal-weight’ rating on Britannia, setting a target price of ₹5,424, which is close to the current market price (CMP) of ₹5,404.95. Key observations from Britannia’s Q2 FY25 performance include:
- Performance Miss: Britannia missed expectations across all major metrics, with inflation impacting both demand and profitability.
- EBITDA Margin: EBITDA margin dropped 281 basis points year-on-year and 239 basis points quarter-on-quarter to 17.2%, below Morgan Stanley’s estimate of 19.5%.
- Guidance Concerns: The company had previously guided that revenue growth would align with volume growth by Q3 and was targeting double-digit volume growth in FY25. However, Morgan Stanley notes that there appears to be a downside risk to this guidance.
Disclaimer: This information is for informational purposes only and does not constitute financial advice.
