Emkay has given Buy on the stock with a revised price target (PT) of recommendation for Britannia Industries with a target price of Rs. y is bullish on Britannia Industries has recommended buy on the stock with a revised price target (PT) of Rs. 4,050 in its research report issued on Jan 31, 2022

Outlook

Despite pricing actions, margin pressure prevailed due to a higher-than-expected rise in input prices. Further price increases in Q4 and accelerated cost savings should gradually improve margins in the coming quarters. We forecast a 190bps margin gain in FY23-24. The strong topline performance with healthy volumes despite grammage cuts is a positive and can drive upsides. Retain Buy with an unchanged TP of Rs 4,050, rolling forward to Mar’24E EPS and marginally reducing the target multiple to 44x factoring higher COE.

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