NSEI:BRITANNIA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.6%

BRITANNIA

4.9%

IN Food

3.8%

IN Market


1 Year Return

16.6%

BRITANNIA

17.9%

IN Food

6.0%

IN Market

Return vs Industry: BRITANNIA underperformed the Indian Food industry which returned 17.9% over the past year.

Return vs Market: BRITANNIA exceeded the Indian Market which returned 6% over the past year.


Shareholder returns

BRITANNIAIndustryMarket
7 Day4.6%4.9%3.8%
30 Day13.4%6.7%2.9%
90 Day19.1%17.9%2.9%
1 Year17.2%16.6%19.5%17.9%8.2%6.0%
3 Year99.7%96.6%69.8%64.8%23.0%16.7%
5 Year364.7%351.9%141.6%129.7%43.6%30.0%

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?

67.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRITANNIA (₹3252.35) is trading above our estimate of fair value (₹948.49)

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 (67.8x) compared to the Food industry average (14.3x).

PE vs Market: BRITANNIA is poor value based on its PE Ratio (67.8x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: BRITANNIA is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: BRITANNIA is overvalued based on its PB Ratio (18.4x) compared to the IN Food industry average (0.9x).


Next Steps

Future Growth

How is Britannia Industries forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRITANNIA's forecast earnings growth (17.3% per year) is above the savings rate (7.6%).

Earnings vs Market: BRITANNIA's earnings (17.3% per year) are forecast to grow slower than the Indian market (18% per year).

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

Revenue vs Market: BRITANNIA's revenue (11.6% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: BRITANNIA's revenue (11.6% 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 high in 3 years time (28%)


Next Steps

Past Performance

How has Britannia Industries performed over the past 5 years?

14.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BRITANNIA's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: BRITANNIA's earnings growth over the past year (10.1%) is below its 5-year average (14.1% per year).

Earnings vs Industry: BRITANNIA earnings growth over the past year (10.1%) underperformed the Food industry 15.6%.


Return on Equity

High ROE: BRITANNIA's Return on Equity (26.7%) is considered high.


Return on Assets

ROA vs Industry: BRITANNIA has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: BRITANNIA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Britannia Industries's financial position?


Financial Position Analysis

Short Term Liabilities: BRITANNIA's short term assets (₹35.3B) exceeds its short term liabilities (₹18.5B)

Long Term Liabilities: BRITANNIA's short term assets (35.3B) exceeds its long term liabilities (1.0B)


Debt to Equity History and Analysis

Debt Level: BRITANNIA's debt to equity ratio (3.7%) is considered satisfactory

Reducing Debt: BRITANNIA's debt to equity ratio has reduced from 19.2% to 3.7% over the past 5 years.

Debt Coverage: BRITANNIA's debt is well covered by operating cash flow (735.7%).

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


Balance Sheet

Inventory Level: BRITANNIA has a high level of physical assets or inventory.

Debt Coverage by Assets: BRITANNIA's debt is covered by short term assets (assets are 22.447890x debt).


Next Steps

Dividend

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

0.46%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.4%industryaverage0.8%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BRITANNIA's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: BRITANNIA's dividend (0.46%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: BRITANNIA's dividend payments have been volatile 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 reasonably low payout ratio (31.3%), BRITANNIA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BRITANNIA's dividends in 3 years are forecast to be well covered by earnings (35.6% payout ratio).


Next Steps

Management

What is the CEO of Britannia Industries's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Varun Berry (57yo)

5.5yrs

Tenure

₹91,002,555

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. Mr. Berry served as Head of Indian Oper ...


CEO Compensation Analysis

Compensation vs. Market: Varun's total compensation ($USD1.28M) is about average for companies of similar size in the Indian market ($USD1.13M).

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


Management Age and Tenure

2.0yrs

Average Tenure

54yo

Average Age

Experienced Management: BRITANNIA's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Age and Tenure

12.0yrs

Average Tenure

68.5yo

Average Age

Experienced Board: BRITANNIA's board of directors are seasoned and experienced ( 12 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹6,330,46019 Mar 19
Varun Berry
EntityIndividual
Role
Chief Executive Officer
MD & Whole Time Director
Shares2,000
Max Price₹3,165.23
Sell₹31,900,29921 Dec 18
Varun Berry
EntityIndividual
Role
Chief Executive Officer
MD & Whole Time Director
Shares10,000
Max Price₹3,190.03
Sell₹47,009,54817 Dec 18
Varun Berry
EntityIndividual
Role
Chief Executive Officer
MD & Whole Time Director
Shares15,000
Max Price₹3,133.97
Sell₹159,662,50126 Nov 18
Varun Berry
EntityIndividual
Role
Chief Executive Officer
MD & Whole Time Director
Shares53,000
Max Price₹3,012.50

Ownership Breakdown


Management Team

  • Varun Berry (57yo)

    MD & Whole Time Director

    • Tenure: 5.5yrs
    • Compensation: ₹91.00m
  • Manjunath Desai (48yo)

    Head of Consumer Insight

    • Tenure: 0yrs
    • Compensation: ₹813.64k
  • Abhishek Sinha (63yo)

    Head - Dairy Business

    • Tenure: 0.08yrs
    • Compensation: ₹4.05m
  • N. Venkataraman (54yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
  • Gunjan Shah (43yo)

    Head of Sales & Dairy Business

    • Tenure: 0yrs
  • Vinay Kushwaha

    Head of Supply Chain

    • Tenure: 9.2yrs
  • Manoj Balgi

    Head of Procurement

    • Tenure: 0yrs
  • Ritesh Rana

    Vice President of Human Resources

    • Tenure: 0yrs
  • T. Thulsidass

    Company Secretary & Compliance Officer

    • Tenure: 1.1yrs
  • Vinay Subramanyam

    Head of Marketing

    • Tenure: 0.8yrs

Board Members

  • Keki Dadiseth (74yo)

    Non-Executive Independent Director

    • Tenure: 13.4yrs
    • Compensation: ₹7.04m
  • Nusli Wadia (75yo)

    Non-Executive Chairman

    • Tenure: 26.1yrs
    • Compensation: ₹53.56m
  • Anil Hirjee (80yo)

    Non-Executive Director

    • Tenure: 26.1yrs
    • Compensation: ₹9.30m
  • Ness Wadia (48yo)

    Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: ₹7.23m
  • Keki Elavia (73yo)

    Non-Executive Independent Director

    • Tenure: 2.2yrs
    • Compensation: ₹7.08m
  • Avijit Deb (71yo)

    Non-Executive Independent Director

    • Tenure: 23.3yrs
    • Compensation: ₹4.03m
  • Jeh Wadia (46yo)

    Non-Executive Director

    • Tenure: 14.1yrs
    • Compensation: ₹2.27m
  • Varun Berry (57yo)

    MD & Whole Time Director

    • Tenure: 5.5yrs
    • Compensation: ₹91.00m
  • Ajay Shah (53yo)

    Additional Non-Executive Independent Director

    • Tenure: 2.7yrs
    • Compensation: ₹2.51m
  • Ajai Puri (66yo)

    Non-Executive Independent Director

    • Tenure: 10.5yrs
    • Compensation: ₹5.69m

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: ₹781.599b
  • Shares outstanding: 240.32m
  • Website: https://www.britannia.co.in

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; and dairy products, including milk, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:44
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.