Monday, August 31, 2015

get 214% returns in 3 years by buying Britannai (@-2800, emp-6000)

Britannai

Britannia, part of the Wadia group, is a major player in the Indian food market (the snack segment) with a strong position in the domestic biscuit segment and a good presence in the other bakery products & dairy segment.

Britannia is the no.2 player in the domestic biscuit marketwith more than a 30% market share. 

 It has manufacturing facilities in West Bengal (Kolkata), New Delhi, Tamil Nadu (Chennai), Maharashtra (Mumbai),Uttarakhand, Odisha and Bihar with an annual capacityof 8 lakh tonne. 

Strong brand; tasting success under new leadership
Turning into a snack and food company
Margins not only sustainable but could also firm up further
Focus on strengthening go-to market strategy
Direct distribution to increase by 25% pa
Route to market strategy implemented in 13 more cities
Focus on tapping the Hindi belt
Innovation remains the key to growth
Revenue growth to sustain at 14-15%
Raw material prices remain benign

Key Concern

Volatility in raw material prices
Increase in competitive intensity

Valuation

Sales are expected to increase from 7800cr to 12000cr
eps is expected to increase from 45 to 104

we are expecting that share of Britannia will reach 6000 in next 2 yrs @ valuation of 57PE







 

No comments:

Post a Comment