NSEI:BRITANNIA

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with solid track record.


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

Stable Share Price: BRITANNIA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.7%

BRITANNIA

14.8%

IN Food

8.9%

IN Market


1 Year Return

-18.9%

BRITANNIA

-3.8%

IN Food

-30.6%

IN Market

Return vs Industry: BRITANNIA underperformed the Indian Food industry which returned -3.2% over the past year.

Return vs Market: BRITANNIA exceeded the Indian Market which returned -29.3% over the past year.


Shareholder returns

BRITANNIAIndustryMarket
7 Day15.7%14.8%8.9%
30 Day-16.7%-13.9%-24.8%
90 Day-18.3%-12.3%-29.4%
1 Year-18.4%-18.9%-2.4%-3.8%-29.2%-30.6%
3 Year48.1%45.9%43.8%39.4%-17.0%-21.5%
5 Year129.5%123.2%84.2%75.2%-5.4%-10.4%

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?

44.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRITANNIA (₹2473.75) is trading above our estimate of fair value (₹971.74)

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 (44.9x) compared to the Food industry average (10.3x).

PE vs Market: BRITANNIA is poor value based on its PE Ratio (44.9x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: BRITANNIA is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: BRITANNIA is overvalued based on its PB Ratio (16.4x) compared to the IN Food industry average (0.7x).


Next Steps

Future Growth

How is Britannia Industries forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRITANNIA's forecast earnings growth (14.1% per year) is above the savings rate (6.5%).

Earnings vs Market: BRITANNIA's earnings (14.1% per year) are forecast to grow slower than the Indian market (19.6% per year).

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

Revenue vs Market: BRITANNIA's revenue (10.7% per year) is forecast to grow faster than the Indian market (8.9% per year).

High Growth Revenue: BRITANNIA's revenue (10.7% 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 (29.1%)


Next Steps

Past Performance

How has Britannia Industries performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRITANNIA has high quality earnings.

Growing Profit Margin: BRITANNIA's current net profit margins (11.5%) are higher than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: BRITANNIA's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: BRITANNIA's earnings growth over the past year (17.7%) exceeds its 5-year average (12.8% per year).

Earnings vs Industry: BRITANNIA earnings growth over the past year (17.7%) underperformed the Food industry 20.6%.


Return on Equity

High ROE: BRITANNIA's Return on Equity (36%) is considered high.


Next Steps

Financial Health

How is Britannia Industries's financial position?


Financial Position Analysis

Short Term Liabilities: BRITANNIA's short term assets (₹37.7B) exceed its short term liabilities (₹24.4B).

Long Term Liabilities: BRITANNIA's short term assets (₹37.7B) exceed its long term liabilities (₹8.2B).


Debt to Equity History and Analysis

Debt Level: BRITANNIA's debt to equity ratio (37.1%) is considered satisfactory.

Reducing Debt: BRITANNIA's debt to equity ratio has increased from 11.6% to 37.1% over the past 5 years.

Debt Coverage: BRITANNIA's debt is well covered by operating cash flow (55.8%).

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 2.8x debt).


Next Steps

Dividend

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

0.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BRITANNIA's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: BRITANNIA's dividend (0.61%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).


Stability and Growth of Payments

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 (27.2%), 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 (38.8% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Varun Berry (57yo)

5.92s

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 ($USD1.21M) is about average for companies of similar size in the Indian market ($USD1.10M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Varun Berry
MD & Whole Time Director5.92yrs₹91.00m0.045% 274.7m
N. Venkataraman
Chief Financial Officer3.25yrsno datano data
T. Thulsidass
Company Secretary & Compliance Officer1.5yrsno datano data
Gunjan Shah
Head of Sales & Dairy Businessno datano datano data
Vinay Subramanyam
Head of Marketing1.17yrsno datano data
Ritesh Rana
Vice President of Human Resourcesno datano datano data
Manjunath Desai
Head of Consumer Insightno data₹813.64kno data
Abhishek Sinha
Head - Dairy Business0.50yr₹4.05mno data
Vinay Kushwaha
Head of Supply Chain9.58yrsno datano data
Manoj Balgi
Head of Procurementno datano datano data

2.4yrs

Average Tenure

54yo

Average Age

Experienced Management: BRITANNIA's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Varun Berry
MD & Whole Time Director5.92yrs₹91.00m0.045% 274.7m
Keki Dadiseth
Non-Executive Independent Director13.83yrs₹7.04mno data
Nusli Wadia
Non-Executive Chairman26.5yrs₹53.56m0.0019% 11.4m
Anil Hirjee
Non-Executive Director26.5yrs₹9.30mno data
Ness Wadia
Non-Executive Director9.92yrs₹7.23m0.0051% 31.1m
Keki Elavia
Non-Executive Independent Director2.58yrs₹7.08mno data
Avijit Deb
Non-Executive Independent Director23.75yrs₹4.03mno data
Jehangir Wadia
Non-Executive Director14.5yrs₹2.27mno data
Ajay Shah
Additional Non-Executive Independent Director3yrs₹2.51mno data
Ajai Puri
Non-Executive Independent Director10.92yrs₹5.69mno data

12.4yrs

Average Tenure

68.5yo

Average Age

Experienced Board: BRITANNIA's board of directors are seasoned and experienced ( 12.4 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: ₹608.204b
  • Shares outstanding: 240.47m
  • 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, cheese, dahi, ghee, dairy whiteners, and butter. It primarily offers its biscuits under the Good Day, Crackers, NutriChoice, Marie Gold, Tiger, Milk Bikis, Jim Jam + Treat, Bourbon, Little Hearts, Pure Magic, and Nice Time names. The company also exports its products to approximately 79 countries worldwide. Britannia Industries Limited was founded in 1892 and is based in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 13:02
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.