The board recommended dividend for the financial year ended March 31, 2019, at 1500 percent i.e. Rs 15 per equity share of Re 1 each.
Shares of Britannia Industries fell 2 percent intraday Friday after brokerages including CLSA and Credit Suisse cut the target price after the company announced its Q4 earnings.
The company's Q4 net profit was up 12 percent at Rs 294.3 crore against Rs 263 crore. Revenue was up 10.3 percent at Rs 2,799 crore versus Rs 2,537.5 crore.
The board recommended dividend for the financial year ended March 31, 2019, at 1500 percent i.e. Rs 15 per equity share of Re 1 each.
According to CLSA, it is an in-line volume growth but EBITDA miss, while management outlook is positive for FY20 on growth. It cut the EPS estimate by 3-4 percent.
Credit Suisse | Rating: Outperform | Target: Cut to Rs 3,250 from Rs 3,400 per share
The EBITDA growth is moderating due to macro slowdown, while volumes are up 7% YoY, said Credit Suisse.
The research house cut FY20/21 EPS estimates by 6-8%
The biscuit market growth has slowed down by 500 bps in the past two quarters. Increase in ICD is a concern, but has not changed from Sep 2018 to March 2019, it added.
Macquarie | Rating: Underperform | Target: Raised to Rs 2,473 from Rs 2,104 per share
Macquarie cuts FY20/21 EBITDA by 1 percent, while it raised FY20/21 earnings by 3-4% on higher other income assumptions. Nielsen numbers show the company's market share loss for Parle and we are 7-12% below consensus earnings for FY20/21, it said.
Citi | Rating: Buy | Target: Rs 3,250 per share
According to Citi, the market share gains have accelerated in the past 6 months and the company expects to ramp up its innovation agenda, including new category launches.
At 09:54 hrs Britannia Industries was quoting at Rs 2,727.00, down Rs 58.50, or 2.10 percent on the BSE.
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