Britannia: Corrections may be good entry points for long-term investors

Focus on rural markets and high-margin products boosts performance

While the food category is in a sweet spot amidst the coronavirus-led disruption, Britannia Industries' June quarter (Q1) results beat the already high Street expectations on Friday. 

The maker of Good Day brand, in fact, delivered results that were ahead of expectations on all fronts and raised the bar for peers like Nestle.

Besides brand loyalty, Britannia's strategy to push high-margin products at a time when product availability was more crucial in the current Covid-19-led environment as many small/unorganised players are struggling, coupled with increased focus on rural markets, which are less affected by the pandemic, were the key drivers of