Brokerages remain divided in their outlook on Britannia Industries after the company’s recent performance. While Avendus has maintained an ‘Add’ rating on the stock, Motilal Oswal (MOSL) remains cautious with a ‘Neutral’ stance, both citing pricing-led growth but flagging volume and margin-related concerns.
Avendus on Britannia: Double-digit growth expected, valuation at 50x PE
Avendus retained its ‘Add’ call, revising the target price to ₹5,800 from ₹5,900. The brokerage sees growth driven primarily by pricing, with volume recovery likely to happen gradually. It also highlighted Britannia’s entry into adjacencies as a key enabler for sustained double-digit growth.
Margins are forecasted to stabilize around 18% over FY26–27, with the firm modeling a low double-digit revenue CAGR and a ~13% PAT CAGR over FY25–27. The stock is valued at 50x forward earnings to arrive at the target.
Motilal Oswal on Britannia: Neutral view on continued pressure
MOSL maintained a ‘Neutral’ rating on Britannia with a target price of ₹5,850. It acknowledged that while revenue growth continues to be driven by pricing, margin pressures persist.
The brokerage flagged that EBITDA margins are expected to remain in the range of 18–18.5% over FY26–28 and kept EPS estimates unchanged. The company remains open to price cuts if required, especially in the face of tepid volume growth. MOSL believes profitability could recover gradually, in line with previous inflationary cycles, but is waiting for stable demand trends in core categories before turning more constructive.
Disclaimer: The views expressed in this article are solely those of the brokerages quoted. They do not represent the views of this publication and should not be construed as investment advice. Investors are advised to consult certified financial professionals before making any investment decisions.
