Thursday, February 11, 2021
After Britannia announced its December quarter results for FY21 (Q3FY21) on February 5, 2021, the FMCG firm's stock has lost 3.2 percent in the four trading sessions since 10th Feb., as compared to the benchmark S&P BSE Sensex's 1.13 percent gain in the same period.
Analysts said that Britannia's sales growth of 6 percent in the quarter under review was "disappointing", even though margin gains remained strong.
"Slowdown in sales growth was due to sluggish category trends in MT and reversal of higher in-home consumption demand seen in Q1, with consumer shifting to other snacking options. Commentary indicated a gradual recovery in growth to pre-Covid levels. We cut our FY21-23 estimates marginally by 2-4 percent on account of a sequential slowdown in growth. We expect re-opening of schools/offices to drive on-the-go consumption and improve growth," the brokerage said, adding that it maintains 'Buy' with a revised target price of Rs 4,500.
