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Britannia Industries extends rally on heavy volumes

Q4 EBITDA or operating margin expanded 260bp to 7.8%, the highest in 14 quarters.

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SI Reporter Mumbai
Last Updated : May 28 2013 | 11:21 AM IST
Britannia Industries has moved higher by 5% to Rs 699, extending its previous day’s 16% rally, after reporting a robust 66% year-on-year (yoy) growth in its standalone net profit at Rs 88 crore for the quarter ended March 31.2013 against Rs 53 crore in a year ago quarter.

The company’s net sales grew 13.5% yoy to Rs 1,486 crore driven by 3.5% growth in volumes, with the balance being price hikes and product mix improvement.

EBITDA or operating margin expanded 260bp to 7.8%, the highest in 14 quarters.

Meanwhile, the fast moving consumer goods (FMCG) major announced key organisational changes which would enable the company to focus on domestic and international markets.

Analyst at Motilal Oswal Securities has upgrades the stock to BUY with a target price of Rs 700 per share.

Going forward, analyst expects the company’s volume growth trend to improve further aided by aggressive brand investments as well as portfolio expansion.

The stock opened at Rs 670 and hit a low of Rs 652 in early morning trades on NSE. A combined 617,789 shares have already changed hands on the counter till 1100 hours against an average around 340,000 shares that were traded daily in past two weeks on NSE and BSE.
 

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First Published: May 28 2013 | 11:20 AM IST

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