Britannia Industries Limited
Q3 FY2025 Results Research Report
Stock Overview
₹1,19,376 Cr.
Market Cap
₹4,956
Current Price
₹6,473 / ₹4,641
52-Week High/Low
54.9
Stock P/E
₹133
Book Value
1.48%
Dividend Yield
48.9%
ROCE
57.1%
ROE
Q3 FY2025 Financial Performance
₹4,592.62 Cr.
Revenue
↑ 7.9% YoY
₹582.3 Cr.
Net Profit
↑ 4.8% YoY
₹826.50 Cr.
EBITDA
18.0% Margin
₹24.15
EPS
vs ₹23.11 YoY
Expense Analysis
Cost of Materials Consumed
₹2,629.90 Cr. (57.2%)
Employee Benefits
₹105.85 Cr. (2.3%)
Finance Costs
₹44.56 Cr. (1.0%)
Depreciation & Amortization
₹82.38 Cr. (1.8%)
Other Expenses
₹827.60 Cr. (18.0%)
Total Expenses
₹3,874.65 Cr. (84.4%)
Strategic Growth Plans
Capacity Expansion & Capex
₹500-600 Cr. targeted investment towards:
- Manufacturing automation
- New production units in rural India
- Dairy business expansion
- International expansions
Product & Brand Strategy
- New health & wellness products
- Premium biscuit segment expansion
- Dairy-based product innovation
- Premium category focus
Digital & Rural Expansion
- E-commerce platform integration
- Direct distribution network
- Rural market penetration
- Digital sales channels
Competitive Landscape
| Competitor | Revenue (₹ Cr.) | Market Share | Key Strengths |
|---|---|---|---|
| Britannia | 17,580 | 36% | Brand loyalty, strong margins, rural reach |
| Parle | 16,200 | 34% | Mass-market dominance, affordability |
| ITC | 10,500 | 20% | Strong advertising & premium offerings |
| Nestlé | 17,500 | 10% | Diversified portfolio, dairy dominance |
Key Risks & Challenges
Commodity Inflation
Wheat, milk, and sugar price fluctuations may pressure margins
Cost-push inflation could lead to pricing challenges
Regulatory Risks
FSSAI regulations on sugar & fat content
Increased taxation on packaged food items
Competition
ITC’s aggressive marketing in premium biscuits
Parle’s deep penetration in rural India
Market Risks
Currency & export risks in international markets
Consumer demand slowdown impact
Valuation & Investment Thesis
54.9x
P/E Ratio
Premium vs. Industry Avg ~40x
37.3x
Price-to-Book (P/B)
Reflects high ROE
~35x
EV/EBITDA
Premium due to margins
1.48%
Dividend Yield
Stable payout policy
Investment Rationale
- High ROE (57.1%) & ROCE (48.9%) indicating efficient capital utilization
- Consistent earnings growth with sales growth of 8.5% CAGR (3Y avg)
- Resilient business model with market leadership and strong pricing power
- Strategic expansion into dairy & bakery segments as future growth drivers
- Defensive FMCG stock providing steady earnings across economic cycles
Final Verdict: HOLD with Positive Bias
Premium
Valuation
P/E 54.9x
5-8%
Short-Term Growth
Stable margins
12-15%
Long-Term CAGR
3-5 years outlook
₹4,500-4,700
Accumulation Range
Buy on dips
Additional Performance Metrics
5.12%
Sales Growth (YoY)
0.72%
Profit Growth (YoY)
8.48%
Sales Growth (3Yrs)
4.89%
Profit Growth (3Yrs)
50.6%
Promoter Holding
24.1 Cr.
No. of Equity Shares
₹2,754 Cr.
Debt
₹3,186 Cr.
Reserves
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