External broker reports(aggregated public sources), HDFC Securities

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External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>We believe Britannia’s biscuits portfolio can deliver mid to high single-digit volume growth (6% volume CAGR over FY14-24) in the medium term, courtesy (a) formalization being visible in the foods segment, given a high share of the unorganised market, (b) ramping up of its distribution network in focus states (predominantly Hindi heart belt), currently under-indexed, (c) focus on innovation and premiumization, (d) prioritising of in-house manufacturing (65% of sales), which improves product quality and reduces distance travelled, which helps bring down market returns, (e) increasing consumer preference for INR 10 SKU vs INR 5 SKU, as the former helps to satiate one’s appetite</li><li>The cherry on the cake is that the management realises there might be not enough growth coming from the well-penetrated biscuits category once it has covered gaps in distribution</li><li>As a result, it has started its transition from being a ‘biscuits and bakery’ company to a ‘food’ company via (a) emphasis on launching value-added products and customization in traditional and highly competitive categories (bread, cake rusk), (b) tying with strategic partners (Bel SA– cheese, croissant – Chipita), where it lacks strategic acumen, and (c) leveraging its distribution network for incubating high potential fast-growing categories (wafers, healthy snacks, etc.)</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We believe Britannia’s biscuits portfolio can deliver mid to high single-digit volume growth (6% volume CAGR over FY14-24) in the medium term, courtesy (a) formalization being visible in the foods segment, given a high share of the unorganised market, (b) ramping up of its distribution network in focus states (predominantly Hindi heart belt), currently under-indexed, (c) focus on innovation and premiumization, (d) prioritising of in-house manufacturing (65% of sales), which improves product quality and reduces distance travelled, which helps bring down market returns, (e) increasing consumer preference for INR 10 SKU vs INR 5 SKU, as the former helps to satiate one’s appetiteThe cherry on the cake is that the management realises there might be not enough growth coming from the well-penetrated biscuits category once it has covered gaps in distributionAs a result, it has started its transition from being a ‘biscuits and bakery’ company to a ‘food’ company via (a) emphasis on launching value-added products and customization in traditional and highly competitive categories (bread, cake rusk), (b) tying with strategic partners (Bel SA– cheese, croissant – Chipita), where it lacks strategic acumen, and (c) leveraging its distribution network for incubating high potential fast-growing categories (wafers, healthy snacks, etc.)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Britannia (4QFY24): Metamorphosis into a ‘total Food’ Company. Upgrade to ADD

Britannia Industries

Britannia (4QFY24): Metamorphosis into a ‘total Food’ Company. Upgrade to ADD