India's Britannia rises on positive volume momentum, lower expenses in Q3

Britannia Industries

07/02/2025 04:22

** Shares of Indian biscuit maker Britannia Industries
 BRIT.NS  up as much as 2.2% on Q3 results to 5065 rupees
    ** Co reports 6% volume growth y/y in despite "ongoing
subdued demand" and "increased competitive pressures"
    ** Net profit growth of 4.8% aided by lower employee costs
and advertising spends, analysts say
    ** Gross margin contraction of more than 500bps higher than
expected due to inflation in key commodities - JPMorgan 
    ** Analysts see green shoots from trade promotions and
distribution network expansion aiding volume growth amid ongoing
margin pressure
    ** Stock rated "Hold" on avg by 33 analysts - LSEG
    ** Avg PT of 5421.88 rupees provides a 7.7% upside to
current stock price 

 (Reporting by Ananta Agarwal in Bengaluru)
 ((Ananta.Agarwal@thomsonreuters.com))