Shares of Britannia Industries Ltd gained over 5% to hit a record high in a volatile market today after the FMCG firm reported a 151% rise in profit for the quarter ended December 2022.
Britannia Industries stock hit an all-time high of Rs 4596.65 , rising 5.2 per cent against the previous close of Rs 4369.30 on BSE. The stock opened 3.04% higher at Rs 4502.05 on BSE.
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The large-cap stock is trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Market cap of the firm rose to Rs 1.09 lakh crore on BSE.
In a year, the stock has gained 25.57 per cent and risen 5.61 per cent in 2023.
Britannia Industries reported a consolidated net profit of Rs 932.39 crore for the December quarter, up 151.19 percent from Rs 371.18 crore in the corresponding quarter of the previous year. This included one-time gain of Rs 375.60 crore. Excluding the one-time gain, the profit jumped 50 per cent year on year (YoY).
Revenue from operations came in at Rs 4,196.80 crore, up 17.39 percent from Rs 3,574.98 crore in the corresponding quarter last year.
Ahead of the earnings, HDFC Securities said the FMCG major was likely to report a 18 per cent YoY rise in revenues, with a volume growth of 7 per cent.It saw EBITDA surging 27 per cent YoY, with Ebitda margin expanding 100 bps YoY to 16.3 per cent. Profit was expected to climb 30.4 per cent YoY to Rs 480 crore. JM Financial in its earnings review said Britannia delivered yet another stellar quarter. Traction on sales front continued to be strong (we estimate domestic volumes to have grown 5-6% during Dec-Q), but importantly, the business has now already recouped all the margins that were lost during the recent hyperinflationary phase.
“We expect the stock to react positively to the result but reckon that the easier part of the stock’s upmove would then be mostly done with,” said JM Financial.
The brokerage has given a target price of Rs 4,620, a 9.7 percent rise against the previous target of Rs 4210.
YES Securities said employee cost as well as other expenses rose 70bps YoY, respectively. Consolidated EBITDA margin saw an expansion of 440bps YoY to 19.5%.
Revenue came below 0.9% below consensus and EBITDA 20% above consensus, said the brokerage.
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