NSEI:BRITANNIA

Stock Analysis Report

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Executive Summary

Britannia Industries Limited manufactures and sells various food products primarily in India. More Details


Snowflake Analysis

Outstanding track record established dividend payer.

Share Price & News

How has Britannia Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BRITANNIA is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BRITANNIA's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.9%

BRITANNIA

-1.1%

IN Food

-0.3%

IN Market


1 Year Return

15.5%

BRITANNIA

17.7%

IN Food

15.9%

IN Market

Return vs Industry: BRITANNIA underperformed the Indian Food industry which returned 17.8% over the past year.

Return vs Market: BRITANNIA matched the Indian Market which returned 15.9% over the past year.


Shareholder returns

BRITANNIAIndustryMarket
7 Day0.9%-1.1%-0.3%
30 Day-3.2%-1.3%4.9%
90 Day-3.7%11.4%24.5%
1 Year19.3%15.5%19.4%17.7%18.0%15.9%
3 Year60.7%54.1%42.1%37.6%9.7%4.4%
5 Year191.5%175.9%192.7%177.8%82.1%68.4%

Long-Term Price Volatility Vs. Market

How volatile is Britannia Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Britannia Industries undervalued compared to its fair value and its price relative to the market?

48.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRITANNIA (₹3609.05) is trading above our estimate of fair value (₹995.41)

Significantly Below Fair Value: BRITANNIA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRITANNIA is poor value based on its PE Ratio (48.5x) compared to the IN Food industry average (14.2x).

PE vs Market: BRITANNIA is poor value based on its PE Ratio (48.5x) compared to the Indian market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: BRITANNIA is poor value based on its PEG Ratio (6.5x)


Price to Book Ratio

PB vs Industry: BRITANNIA is overvalued based on its PB Ratio (32.5x) compared to the IN Food industry average (1.3x).


Next Steps

Future Growth

How is Britannia Industries forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRITANNIA's forecast earnings growth (7.5% per year) is above the savings rate (7%).

Earnings vs Market: BRITANNIA's earnings (7.5% per year) are forecast to grow slower than the Indian market (25.5% per year).

High Growth Earnings: BRITANNIA's earnings are forecast to grow, but not significantly.

Revenue vs Market: BRITANNIA's revenue (9.5% per year) is forecast to grow slower than the Indian market (11.7% per year).

High Growth Revenue: BRITANNIA's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRITANNIA's Return on Equity is forecast to be very high in 3 years time (43.6%).


Next Steps

Past Performance

How has Britannia Industries performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRITANNIA has high quality earnings.

Growing Profit Margin: BRITANNIA's current net profit margins (14.1%) are higher than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: BRITANNIA's earnings have grown by 16.1% per year over the past 5 years.

Accelerating Growth: BRITANNIA's earnings growth over the past year (42.8%) exceeds its 5-year average (16.1% per year).

Earnings vs Industry: BRITANNIA earnings growth over the past year (42.8%) exceeded the Food industry 17.8%.


Return on Equity

High ROE: BRITANNIA's Return on Equity (65.8%) is considered outstanding.


Next Steps

Financial Health

How is Britannia Industries's financial position?


Financial Position Analysis

Short Term Liabilities: BRITANNIA's short term assets (₹36.6B) do not cover its short term liabilities (₹39.3B).

Long Term Liabilities: BRITANNIA's short term assets (₹36.6B) exceed its long term liabilities (₹8.3B).


Debt to Equity History and Analysis

Debt Level: BRITANNIA's debt to equity ratio (89.9%) is considered high.

Reducing Debt: BRITANNIA's debt to equity ratio has increased from 7.6% to 89.9% over the past 5 years.

Debt Coverage: BRITANNIA's debt is well covered by operating cash flow (81.8%).

Interest Coverage: BRITANNIA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Britannia Industries's current dividend yield, its reliability and sustainability?

2.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BRITANNIA's dividend (2.3%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: BRITANNIA's dividend (2.3%) is in the top 25% of dividend payers in the Indian market (1.81%)


Stability and Growth of Payments

Stable Dividend: BRITANNIA's dividends per share have been stable in the past 10 years.

Growing Dividend: BRITANNIA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (111.5%), BRITANNIA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BRITANNIA's dividends in 3 years are forecast to be covered by earnings (75.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Varun Berry (58 yo)

6.75yrs

Tenure

₹97,853,600

Compensation

Mr. Varun Berry has been the Managing Director of Britannia Industries Limited since April 1, 2014 and served as its Chief Operating Officer since February 01, 2013. He serves as Non-Executive Independent ...


CEO Compensation Analysis

Compensation vs Market: Varun's total compensation ($USD1.34M) is above average for companies of similar size in the Indian market ($USD938.47K).

Compensation vs Earnings: Varun's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Varun Berry
MD & Whole Time Director6.75yrs₹97.85mno data
N. Venkataraman
Chief Financial Officer4.08yrs₹25.50mno data
Tharayil Thulsidass
Company Secretary & Compliance Officer2.33yrs₹5.80mno data
Ramamurthy Jayaraman
General Manager of Corporate Finance1yrno datano data
Sudhir Nema
Chief Development & Quality Officer1yrno datano data
Vinay Subramanyam
Vice President of Marketing2yrsno datano data
Ritesh Rana
Vice President of Human Resourceno datano datano data
Manjunath Desai
Head of Consumer Insightno data₹813.64kno data
Abhishek Sinha
Head - Dairy Business1.33yrs₹4.05mno data
Gunjan Shah
Chief Commercial Officer1yrno datano data
Vinay Kushwaha
Chief Supply Chain Officer10.42yrsno datano data
Manoj Balgi
Head of Procurementno datano datano data

2.0yrs

Average Tenure

55yo

Average Age

Experienced Management: BRITANNIA's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Varun Berry
MD & Whole Time Director6.75yrs₹97.85mno data
Keki Dadiseth
Non-Executive Independent Director14.67yrs₹6.13m0.00022%
₹ 1.9m
Nusli Wadia
Non-Executive Chairman27.33yrs₹58.16m0.0019%
₹ 16.3m
Tanya Dubash
Non-Executive Independent Director1.92yrs₹3.25mno data
Ness Wadia
Non-Executive Director10.75yrs₹9.12m0.0067%
₹ 58.5m
Keki Elavia
Non-Executive Independent Director3.42yrs₹6.70mno data
Avijit Deb
Non-Executive Independent Director24.58yrs₹5.32mno data
Yashwant Shankarrao Thorat
Non-Executive Independent Director3.92yrs₹7.75m0.000050%
₹ 434.7k
Jehangir Wadia
Non-Executive Director15.33yrs₹4.43mno data
Ajay Shah
Non-Executive Independent Director3.92yrs₹2.14mno data
Ajai Puri
Non-Executive Independent Director11.75yrs₹6.17mno data

10.8yrs

Average Tenure

67yo

Average Age

Experienced Board: BRITANNIA's board of directors are seasoned and experienced ( 10.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BRITANNIA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Britannia Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Britannia Industries Limited
  • Ticker: BRITANNIA
  • Exchange: NSEI
  • Founded: 1892
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹869.306b
  • Shares outstanding: 240.87m
  • Website: https://britannia.co.in

Number of Employees


Location

  • Britannia Industries Limited
  • The Business Precinct, Tower C
  • 16th & 17th Floor
  • Bengaluru
  • Karnataka
  • 560048
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500825BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1998
BRITANNIANSEI (National Stock Exchange of India)YesEquity SharesININRNov 1998

Biography

Britannia Industries Limited manufactures and sells various food products primarily in India. The company offers bakery products, such as biscuit, bread, cake, and rusk; dairy products, including milk base...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 12:32
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.