[T.S.R:16951] Britannia Industries-The Era of 20X PEs May Be Getting Over; SELL

Britannia's management talked about the vast opportunities in packaged foods in India. It also indicated that the company is poised for strong growth in coming years but was cautious on margins because of higher raw material prices and intensifying competition.

n       India's packaged foods doing well. The company indicated that opportunities in packaged foods are vast. About 9% of food products in India are branded. With growing food consumption as well as growing share of branded foods, Britannia sees strong growth opportunities in coming years.

n       Revenue growth intact. It indicated that, huge investments in ad-spend is resulting in expanding the market. With new products focusing on health awareness, such as Nutrichoice-biscuits and Healthy start ready to eat breakfast products, Britannia is confident of maintaining strong revenue growth in coming years.

n       Profitability to be a concern. With mounting competition as well as higher commodity prices, profitability of the entire sector has been squeezed. With rising raw material prices and less pricing power in value-for-money products, Britannia expects profitability to remain at lower levels than in the past.

 

Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.

 

Nothing in this article is, or should be construed as, investment advice.

 

 

 

 

 

--
For Anything related with Stock market be Online at
http://www.niftyviews.com/
 
Get free updates on your mobile phone. Sms "Join TSR " and send to 09223492234
 
FOR TRIAL STOCK/NIFTY/OPTION CALLS
 
 
You received this message because you are subscribed to Google Group "STOCKRESEARCHER" group.
To post to this group, send an email to STOCKRESEARCHER@googlegroups.com
 
To unsubscribe email
Stockresearcher-unsubscribe@googlegroups.com
 
for more info visit
http://groups.google.com/group/STOCKRESEARCHER?hl=en-GB
.
This is Not a Spam Mail.
Disclaimer :-
"The opinions expressed by the members on this board are based on
their individual experience and perceptions and to share information
with other members with the best of intentions to help fellow members
in investment decisions as equity investment is a risky venture."