Britannia up 3%; Nomura bullish on its leadership position

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Shares of Britannia jumped over 3 percent intraday on Thursday. Nomura has a buy rating on the stock with a target price of Rs 3790 per share. The brokerage is betting on Britannia's strong leadership position in biscuit space and growth opportunities in near team.

Nomura believes that  Britannia is likely to be a primary beneficiary of strong industry growth given its dominant position in all the three segments biscuits, cakes and breads. “The company has been able to offer consumers a complete and superior portfolio, while also being able to implement its premiumisation strategy by continuously innovating and diversifying into similar products, which has helped push growth and profitability,” it says in a report.

According to estimates, Indian biscuit market is set to deliver a CAGR of 13 percent in next 5 years mainly driven by the low per capita consumption, which is set to rise given rising incomes, favourable demographics and increasing urbanisation. 

The food company's Q1 consolidated net profit surged 66.9 percent to Rs 190 crore while revenue jumped 13 percent to Rs 2018.9 crore.

At 14:11 hrs Britannia Industries was quoting at Rs 3,034.00, up Rs 51.20, or 1.72 percent on the BSE. Posted by Nasrin SultanaFollow @NasrinzStory