Prabhudas Lilladher: Britannia Industries Underperformer

According to the brokerage house, Britannia's performances during Q2 FY07 and H1 FY07 have been primarily hit by the higher prices of wheat and the company has not been able to pass on the rising cost. As a result, they have reduced their earnings per share (EPS) estimate for FY07 by 19.9% to Rs 48.5 and for FY08 by 10.2% to Rs 66.2.

The report further added that, the stock trades at 24x FY07E and 17.5x FY08E earnings at the CMP of Rs 1,162. They downgrade it to Under Performer in view of the mounting raw material costs adversely impacting earnings.

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