Britannia Thinking Better - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Britannia Thinking Better

May 24, 2000

Britannia Industries Ltd. (BIL), the leader in branded biscuits marker is diversifying into the growing dairy business. The company is revamping its strategies by introducing new products and a new brand for its dairy business. New strategies for growing faster
BIL is planning to introduce a clutch of sub - brands for specific product categories under the mother brand Britannia. Sub-brands will be used to give focus and to create distinct images for its new product categories and to get economies from brand building.

  • Extending the health franchise: BIL has extended the Nutri - Choice range of biscuits to Nutri Choice Goodmorning, Nutri Choice Junior and Nutri Choice Isabgol. The new range aims to make biscuits relevant at any time of the day. It has also launched Nutri Choice VitaMarie Gold fortified with vitamins, minerals and proteins. Over the time the company plans to develop its Nutri Choice brand as one of the larger brand in its portfolio.
  • Milkman brand: BIL has developed milkman brand for its dairy products. The company claims a share of 33% of the organised cheese market and 15% of the milk powder. Its butter, milk and ghee are also positioned well in the market. The dairy business, which currently accounts for 9% of its total revenue, is expected to contribute around 15% by 2003. BIL will introduce value-added products under the dairy segment in new packs to reduce the packaging cost.

Introduction of the dairy products under the new brand logo will give critical mass to the company and visibility at the distributor and retail level. The category in India is expected to grow at the rate of 30% per annum. However it faces the strong competition from other beverages and fruit juices requiring high spending for the milk category to remain in the market. The company will be able to grow its topline with the introduction of 3-4 new products in a year diversifying its product portfolio.

Valuations
At the current market price of Rs 500, BIL is trading at a P/E of 24 times its 9 months FY2000 annualised earnings. In the past, the company has enjoyed P/E in the range of 45-50. The company has reported excellent financial performance for the 9 months ended FY2000. Its topline grew by 13% to Rs 8.6 bn and net profit jumped up by 28% to Rs 369 m. It has also declared bonus in the ratio of 1:2. Valuation is likely to be re-rated once the perception of the investors changes.

Equitymaster requests your view! Post a comment on "Britannia Thinking Better". Click here!

  

More Views on News

BRITANNIA 2020-21 Annual Report Analysis (Annual Result Update)

Nov 15, 2021 | Updated on Nov 15, 2021

Here's an analysis of the annual report of BRITANNIA for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of BRITANNIA. Also includes updates on the valuation of BRITANNIA.

Why Investors Should Not Worry About the 29% Fall in Britannia's Bottomline (Views On News)

Aug 2, 2021

Britannia's June quarter earnings missed estimates due to higher costs.

BRITANNIA Announces Quarterly Results (4QFY21); Net Profit Down 3.4% (Quarterly Result Update)

Jul 9, 2021 | Updated on Jul 9, 2021

For the quarter ended March 2021, BRITANNIA has posted a net profit of Rs 4 bn (down 3.4% YoY). Sales on the other hand came in at Rs 31 bn (up 9.2% YoY). Read on for a complete analysis of BRITANNIA's quarterly results.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

What Led to the Massive Surge in the Stock of Jubilant FoodWorks? (Views On News)

Aug 18, 2021

Jubilant FoodWorks hits new high, surges 35% in a month on growth prospects.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

BRITANNIA SHARE PRICE


Dec 3, 2021 (Close)

TRACK BRITANNIA

  • Track your investment in BRITANNIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

BRITANNIA - UNILEVER PLC. COMPARISON

COMPARE BRITANNIA WITH

MARKET STATS