Britannia ANGEL NOV 11

Document Sample
Britannia ANGEL NOV 11 Powered By Docstoc
					                                                                                                       2QFY2012 Result Update | FMCG
                                                                                                                        November 11, 2011



 Britannia                                                                                         NEUTRAL
                                                                                                   CMP                               `485
 Performance Highlights                                                                            Target Price                         -
  (` cr)                       2QFY12          2QFY11         % yoy      Angel est.     % Diff.    Investment Period                      -
  Revenue                          1,294         1,095         18.2         1,291          0.3
  EBITDA                             62              52        20.4             66       (6.0)    Stock Info
  OPM (%)                            4.8             4.7       9bp              5.1     (32bp)    Sector                              FMCG
  PAT                                38              32        18.8             42      (10.4)    Market Cap (` cr)                   5,792
 Source: Company, Angel Research                                                                  Beta                                   0.4

 Britannia reported a strong set of numbers for 2QFY2012. The company                             52 Week High / Low             498/324

 registered top-line growth of 18.2% yoy, driven by volumes, price hikes and an                   Avg. Daily Volume                  19,665
 improved product mix. Earnings growth during the quarter stood strong at 18.8%                   Face Value (`)                              2
 yoy. Operating margin during the quarter marginally expanded, despite higher                     BSE Sensex                         17,193
 staff costs and ad spends. We maintain our Neutral view on the stock.                            Nifty                               5,169
                                                                                                  Reuters Code                       BRIT.BO
 Key highlights for the quarter: Britannia registered robust top-line growth of
                                                                                                  Bloomberg Code                 BRIT@IN
 18.2% yoy in 2QFY2012. The company continued its impressive top-line growth
 because of new product launches, price hikes and improved product mix.
 Britannia has been posting ~20% top-line growth consecutively for the past seven                 Shareholding Pattern (%)
 quarters. During the quarter, Britannia’s operating margin expanded marginally                   Promoters                            51.0
 by 9bp yoy, despite higher staff costs and ad spends, as the company managed
                                                                                                  MF / Banks / Indian Fls              20.1
 its raw-material costs efficiently. Earnings for the quarter grew by 18.8% yoy.
                                                                                                  FII / NRIs / OCBs                    11.3
 Outlook and valuation: We expect Britannia to post a ~17% revenue CAGR                           Indian Public / Others               17.6
 (largely volume growth) over FY2011–13E and model in margin expansion of
 184bp, despite sustained higher ad spends, aided by a benign input cost
 environment and higher operating leverage. Further, in terms of earnings, we                     Abs. (%)               3m    1yr       3yr
 expect Britannia to post a robust ~36% CAGR. At the CMP, the stock is trading at                 Sensex                0.8 (16.5)     74.7
 21.5x FY2013 EPS (in-line with its historical valuations); hence, we recommend                   Britannia              3.6 11.8     108.1
 Neutral on the stock with a fair value `495, based on 22x FY2013E EPS.

  Key financials
  Y/E March (` cr)                         FY2010      FY2011         FY2012E         FY2013E
  Net sales                                 3,403          4,246        5,014           5,858
  % chg                                       8.3           24.8         18.1            16.8
  Net profit (Adj.)                         116.5          145.3        184.1           268.9
  % chg                                     (35.4)          24.7         26.7            46.0
  EBITDA margin (%)                           4.8            5.3          5.8             7.1
  EPS (`)                                     9.8           12.2         15.4            22.5
  P/E (x)                                    49.7           39.9         31.5            21.5
  P/BV (x)                                   14.6           12.8         11.1             9.0
  RoE (%)                                    26.7           34.3         37.8            46.0
  RoCE (%)                                   14.8           20.9         25.3            43.0
  EV/Sales (x)                                1.7            1.3          1.1             1.0     Sreekanth P.V.S
                                                                                                  022 – 3935 7800 Ext: 6841
  EV/EBITDA (x)                              34.7           25.1         19.6            13.7
                                                                                                  sreekanth.s@angelbroking.com
 Source: Company, Angel Research




Please refer to important disclosures at the end of this report                                                                           1
                                                               Britannia | 2QFY2012 Result Update



                    Exhibit 1: Quarterly performance
                    Y/E March (` cr)                  2QFY12 2QFY11 % yoy 1HFY2012 1HFY2011     % chg
                    Net Sales                          1,294   1,095   18.2    2,400   2,008     19.5
                    Consumption of RM                    841    721    16.6    1,567   1,318     18.9
                    (% of Sales)                        65.0    65.8            65.3    65.6
                    Staff Costs                           48     31    57.5      79       56     39.5
                    (% of Sales)                         3.7     2.8             3.3      2.8
                    Advertising                          101     77    30.3     183      146     25.6
                    (% of Sales)                         7.8     7.1             7.6      7.3
                    Other Expenses                       135    123     9.7     260      231     12.2
                    (% of Sales)                        10.5    11.3            10.8    11.5
                    Conversion and other charges         107     91             200      164     21.5
                    (% of Sales)                         8.3     8.3             8.3      8.2
                    Total Expenditure                  1,232   1,044   18.0    2,288   1,916     19.4
                    Operating Profit                      62     52    20.4     113       92     22.2
                    OPM                                  4.8     4.7             4.7      4.6
                    Interest                              10     10    (0.2)     19       19    (0.6)
                    Depreciation                          12     10    11.7      23       20     11.5
                    Other Income                          11     12 (11.5)       38       35      7.7
                    PBT (excl. Extr. Items)               52     44    18.0     109       88     23.8
                    Extr. Income/(Expense)                 -       -               -        -
                    PBT (incl. Extr. Items)               52     44    18.0     109       88     23.8
                    (% of Sales)                         4.0     4.0             4.5      4.4
                    Provision for Taxation                14     12    16.0      30       24     25.7
                    (% of PBT)                          27.1    27.6            27.1    26.7
                    Reported PAT                          38     32    18.8      80       65     23.1
                    PATM                                 2.9     2.9             3.3      3.2
                    Equity shares (cr)                    12     12              12       12
                    EPS (`)                              3.2     2.7   18.8      6.7      5.4    23.1
                    Adjusted PAT                          38     32    18.8      80       65     23.1
                    Source: Company, Angel research


                    Seventh consecutive quarter of ~20% top-line growth

                    Britannia posted robust top-line growth of 18.2% yoy to `1,294cr (`1,095cr),
                    in-line with our estimate. We believe top-line growth was led by ~15% volume
                    growth in its core brands. Moreover, a combination of price hikes and change in
                    product mix aided the company’s top-line growth.




November 11, 2011                                                                                     2
                                                                                      Britannia | 2QFY2012 Result Update



                    Exhibit 2: Seventh consecutive quarter of ~20% top-line growth
                        1,400                                                                                                                                 30%
                        1,200                                                                                                                                 25%
                        1,000
                                                                                                                                                              20%
                            800




                                                                                                                                                                    (yoy %)
                    (`cr)
                                                                                                                                                              15%
                            600
                                                                                                                                                              10%
                            400
                            200                                                                                                                               5%

                                 -                                                                                                                            0%




                                        2Q10


                                                  3Q10


                                                            4Q10


                                                                            1Q11


                                                                                          2Q11


                                                                                                        3Q11


                                                                                                                      4Q11


                                                                                                                                    1Q12


                                                                                                                                                  2Q12
                                                                Top-line (LHS)                             YoY growth (RHS)


                    Source: Company, Angel research


                    Strong earnings growth aided by top-line growth
                    In terms of earnings, Britannia reported robust growth of 18.8% yoy to `38cr.
                    Growth came in below our estimates due to a spike in depreciation.
                    Other income for the quarter came in lower by 11.5% yoy to `11cr.


                    Exhibit 3: Bottom-line growth strong at ~19% yoy
                            70                                                                                                                           250%
                            60                                                                                                                           200%
                            50                                                                                                                           150%
                    (`cr)




                            40                                                                                                                           100%




                                                                                                                                                                    (yoy %)
                            30                                                                                                                           50%
                            20                                                                                                                           0%
                            10                                                                                                                           -50%
                            -                                                                                                                            -100%
                                     2Q10


                                               3Q10


                                                         4Q10


                                                                     1Q11


                                                                                   2Q11


                                                                                                 3Q11


                                                                                                               4Q11


                                                                                                                             1Q12


                                                                                                                                           2Q12




                                                           PAT (LHS)                                    YoY growth (RHS)

                    Source: Company, Angel Research




November 11, 2011                                                                                                                                                        3
                                                                    Britannia | 2QFY2012 Result Update



                    Gross margin expands, OPM up marginally by 9bp yoy
                    On the operating front, Britannia reported margin of 4.8% in 2QFY2012,
                    registering an expansion of 9bp yoy, resulting in EBITDA of `62cr. Gross margin
                    expanded by 87bp for the quarter. During the quarter, the company has been very
                    efficient in managing its operating costs well. During the quarter, other expense
                    declined by 81bp yoy, advertising expense increased by 72bp yoy, conversion
                    charge remained flat yoy and staff cost increased by 93bp yoy.

                    Exhibit 4: Gross margin improves, OPM flat for the quarter

                      12.0%

                      10.0%

                           8.0%

                           6.0%
                     (%)




                           4.0%

                           2.0%

                           0.0%
                                    2Q10


                                            3Q10


                                                      4Q10


                                                             1Q11


                                                                       2Q11


                                                                              3Q11


                                                                                       4Q11


                                                                                              1Q12


                                                                                                     2Q12
                       -2.0%

                                                   OPM                        Gross Margin

                    Source: Company, Angel research


                    Investment arguments
                           Higher consumption of biscuits to lead to the segment’s growth: The biscuit
                           industry, which has been steadily recording double-digit value growth over
                           FY2008–11, is the largest and the fastest growing FMCG category in India.
                           The industry stands at ~`10,782cr in value and has recorded a 9.2% CAGR
                           over FY2006–11. Biscuit volume growth is estimated to be at ~6% yoy going
                           forward, despite no significant change in the distribution network, implying
                           that the key reason for increased biscuit volumes would be higher per
                           capita consumption of biscuits to ~2.1kg/year (1.8kg/year in FY2009), with a
                           55% penetration level in the rural market and 85% penetration in the
                           urban market.

                           Cooling raw-material prices to help improve margins: Over the past one year,
                           raw-material prices have been trending high, putting significant margin
                           pressure on Britannia. However, prices of major commodities such as sugar
                           and wheat have shown some signs of cooling in the past one quarter. While
                           we have limited visibility on raw-material prices over the longer term, with the
                           onset of normal monsoons, we do not expect a significant rise in the prices of
                           these commodities going ahead. Moreover, we believe the company’s various
                           cost-rationalization methods and improving sales mix will aid operating
                           margins to increase from the current level of 5.3% to 5.8% in FY2012E and
                           7.1% in FY2013E.




November 11, 2011                                                                                           4
                                                             Britannia | 2QFY2012 Result Update



                         Increased demand for premium products will lead to higher realization: We
                         expect Britannia to register a ~16% CAGR in its top line, aided by improving
                         sales mix (Britannia has recently introduced premium products in the health
                         and wellness space). Further, we have modeled in the 5–6% increase in the
                         company’s realization on the back of recent price hikes and further price hikes
                         cannot be ruled out. We expect consumers’ uptrading to value-added biscuits
                         (positioned in the health and wellness space) from plain glucose variants of
                         biscuits to support value growth.


                    Outlook and valuation
                    Post 2QFY2012 results, we maintain our revenue and earnings estimates. We
                    expect Britannia to report a CAGR of ~17% in its revenue (largely volume growth)
                    over FY2011–13E and model in margin expansion of 180bp, despite sustained
                    higher ad spends, aided by a benign input cost environment and higher operating
                    leverage. Moreover, in terms of earnings, we expect Britannia to register a robust
                    ~36% CAGR. At the CMP, the stock is trading at 21.5x FY2013 EPS (in-line with its
                    historical valuations); hence, we recommend Neutral on the stock with a fair value
                    `495, based on 22x FY2013E EPS.

                    Key risks to our investment argument

                    1)   Higher-than-anticipated raw-material price inflation

                    2)   High competitive intensity leading to much higher ad spends




November 11, 2011                                                                                     5
                                                                                                                                                                                                                               Britannia | 2QFY2012 Result Update



Exhibit 5: Peer valuation
Company                  Reco                                       Mcap                        CMP                   TP               Upside                           P/E (x)                                    EV/Sales (x)                                          RoE (%)                                         CAGR
                                                                         (` cr)                      (`)                    (`)                     (%)           FY12E                FY13E                 FY12E                    FY13E                     FY12E                  FY13E                     Sales                       EPS
Asian Paints             Neutral                                     29,340                     3,059                          -                          -        29.8                  24.2                        3.1                      2.6                 39.6                      38.3                  17.3                    19.8
Britannia                Neutral                                       5,792                       485                         -                          -        31.5                  21.5                        1.1                      1.0                 37.8                      46.0                  17.3                    36.0
Colgate                  Neutral                                     14,206                     1,045                          -                          -        32.4                  27.7                        5.4                      4.6               111.7                  108.0                      14.9                    12.9
Dabur                    Buy                                         17,155                        99                      115                           17        24.5                  21.4                        3.4                      2.9                 44.9                      41.6                  20.5                    18.8
GSKCHL                   Neutral                                     11,184                     2,659                        -                            -        32.2                  27.1                        3.7                      3.2                 32.6                      31.8                  20.1                    23.9
GCPL                     Accumulate                                  13,285                       411                        -                           11        24.8                  19.1                        3.3                      2.6                 36.6                      29.4                  22.9                    20.2
HUL                      Neutral                                     86,428                        396                         -                          -        33.9                  29.8                        3.8                      3.3                 87.5                      85.3                  12.7                    17.1
ITC                      Neutral                                    164,705                        213                         -                          -        28.5                  24.1                        6.4                      5.3                 32.7                      31.5                  17.6                    17.4
Marico                   Neutral                                       9,053                       147                         -                          -        29.4                  23.3                        2.6                      2.2                 30.2                      28.8                  17.2                    28.0
Nestle                   Neutral                                     43,349                     4,496                          -                          -        44.5                  37.4                        5.9                      5.1                 91.1                      72.9                  16.1                    18.9
Source: Company, Angel Research


Exhibit 6: Angel vs. Consensus
Top-line (` cr)                                                                                 FY2012E                                         FY2013E                                EPS (`)                                                                           FY2012E                                               FY2013E
Angel estimates                                                                                    5,014                                             5,858                             Angel estimates                                                                            15.41                                             22.51
Consensus                                                                                          5,112                                             6,008                             Consensus                                                                                  17.70                                             23.50
Diff (%)                                                                                                 (1.9)                                           (2.5)                         Diff (%)                                                                                   (12.9)                                                 (4.2)
Source: Angel research, Bloomberg


Exhibit 7: Return of Britannia vs. Sensex                                                                                                                          Exhibit 8: One-year forward P/E band
 130%                                                                                                                                                                                  600
 120%                                                                                                                                                                                  500
 110%                                                                                                                                                                                  400
                                                                                                                                                                     Share Price (`)




 100%
                                                                                                                                                                                       300
  90%
  80%                                                                                                                                                                                  200
  70%                                                                                                                                                                                  100
  60%                                                                                                                                                                                    -
                     Dec-10




                                                                    Apr-11




                                                                                                     Jul-11

                                                                                                                  Aug-11
                                                         Mar-11




                                                                                                                                       Oct-11
                                            Feb-11




                                                                                                                            Sep-11
           Nov-10




                                                                                                                                                    Nov-11
                                                                              May-11

                                                                                          Jun-11
                                 Jan-11




                                                                                                                                                                                                                   Dec-05




                                                                                                                                                                                                                                                                Dec-07




                                                                                                                                                                                                                                                                                                             Dec-09
                                                                                                                                                                                                   Apr-05




                                                                                                                                                                                                                                 Aug-06

                                                                                                                                                                                                                                                Apr-07




                                                                                                                                                                                                                                                                              Aug-08

                                                                                                                                                                                                                                                                                              Apr-09




                                                                                                                                                                                                                                                                                                                               Aug-10

                                                                                                                                                                                                                                                                                                                                            Apr-11
                                                                                                                                                                                                                               15x                          20x                            25x                        30x
                                                     Sensex                            Britannia

Source: Company, Angel research                                                                                                                                     Source: Company, Angel research


Exhibit 9: One-year forward P/E                                                                                                                                    Exhibit 10: One-year forward Premium vs. Sensex
  40.0                                                                                                                                                                180%
  35.0                                                                                                                                                                160%
                                                                                                                                                                      140%
  30.0                                                                                                                                                                120%
  25.0                                                                                                                                                                100%
  20.0                                                                                                                                                                 80%
                                                                                                                                                                       60%
  15.0                                                                                                                                                                 40%
  10.0                                                                                                                                                                 20%
   5.0                                                                                                                                                                  0%
                                                                                                                                                                      -20%
    -                                                                                                                                                                 -40%
           Oct-06




                                       Oct-07




                                                                    Oct-08




                                                                                                Oct-09




                                                                                                                            Oct-10




                                                                                                                                                         Oct-11
                    Feb-07




                                                Feb-08




                                                                             Feb-09




                                                                                                         Feb-10




                                                                                                                                     Feb-11
                              Jun-07




                                                           Jun-08




                                                                                       Jun-09




                                                                                                                   Jun-10




                                                                                                                                                Jun-11




                                                                                                                                                                                                          Dec-06



                                                                                                                                                                                                                                     Dec-07



                                                                                                                                                                                                                                                                Dec-08



                                                                                                                                                                                                                                                                                           Dec-09



                                                                                                                                                                                                                                                                                                                      Dec-10
                                                                                                                                                                                        Apr-06
                                                                                                                                                                                                 Aug-06


                                                                                                                                                                                                                   Apr-07
                                                                                                                                                                                                                            Aug-07


                                                                                                                                                                                                                                              Apr-08
                                                                                                                                                                                                                                                       Aug-08


                                                                                                                                                                                                                                                                         Apr-09
                                                                                                                                                                                                                                                                                  Aug-09


                                                                                                                                                                                                                                                                                                    Apr-10
                                                                                                                                                                                                                                                                                                             Aug-10


                                                                                                                                                                                                                                                                                                                                Apr-11
                                                                                                                                                                                                                                                                                                                                         Aug-11




Source: Company, Angel research                                                                                                                                     Source: Company, Angel research




November 11, 2011                                                                                                                                                                                                                                                                                                                                    6
                                                                 Britannia | 2QFY2012 Result Update



                    Profit and loss statement
                    Y/E March (` cr)                    FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E
                    Gross sales                          2,618   3,143    3,427    4,246   5,014   5,858
                    Less: Excise duty                      33       31       23      32      50      59
                    Net Sales                            2,585   3,112    3,403    4,214   4,964   5,799
                    Total operating income               2,585   3,112    3,403    4,214   4,964   5,799
                    % chg                                 17.5    20.4      9.4     23.8    17.8    16.8
                    Total Expenditure                    2,353   2,849    3,241    3,990   4,677   5,387
                    Cost of Materials                    1,555   1,910    2,164    2,764   3,223   3,694
                    Advertising Exp (Incl. Promotion)     180     211      269      304     347     406
                    Personnel                              91       96     106      120     154     174
                    Others                                527     632      703      801     953    1,113
                    EBITDA                                232     263      162      224     287     412
                    % chg                                 79.9    13.4    (38.2)    38.0    28.0    43.8
                    (% of Net Sales)                       9.0     8.4      4.8      5.3     5.8     7.1
                    Depreciation& Amortisation             29       33       38      45      52      60
                    EBIT                                  203     229      125      179     234     352
                    % chg                                 95.7    13.1    (45.6)    43.8    30.7    50.2
                    (% of Net Sales)                       7.8     7.4      3.7      4.3     4.7     6.1
                    Interest & other Charges               10       16        8      40      42      42
                    Other Income                           50       40       51      59      60      58
                    (% of PBT)                            20.6    15.8     30.4     29.7    23.6    15.7
                    Share in profit of Associates            -        -        -       -       -       -
                    Recurring PBT                         243     253      167      198     252     368
                    % chg                                 92.8     4.1    (33.9)    18.4    27.3    46.0
                    Prior Period & Extra Exp./(Inc.)     10.85   20.63    46.64        -       -       -
                    PBT (reported)                        232     233      121      198     252     368
                    Tax                                    41       52        4      53      68      99
                    (% of PBT)                            17.0    20.6      2.5     26.7    27.0    27.0
                    PAT (reported)                        202     201      163      145     184     269
                    Add: Share of earn. of asso.             -        -        -       -       -       -
                    Less: Minority interest (MI)             -        -        -       -       -       -
                    PAT after MI (reported)               202     201      163      145     184     269
                    ADJ. PAT                              191     180      117      145     184     269
                    % chg                                 77.4    (5.6)   (35.4)    24.7    26.7    46.0
                    (% of Net Sales)                       7.4     5.8      3.4      3.4     3.7     4.6
                    Basic EPS (`)                         16.0    15.1      9.8     12.2    15.4    22.5
                    Fully Diluted EPS (`)                 16.0    15.1      9.8     12.2    15.4    22.5
                    % chg                                 77.4    (5.6)   (35.4)    24.7    26.7    46.0




November 11, 2011                                                                                      7
                                                           Britannia | 2QFY2012 Result Update



                    Balance sheet
                    Y/E March (` cr)             FY2008 FY2009 FY2010    FY2011 FY2012E FY2013E
                    SOURCES OF FUNDS
                    Equity Share Capital            24     24      24       24      24       24
                    Preference Capital                -      -       -        -       -       -
                    Reserves& Surplus              732    801     372      427     500      620
                    Shareholders’ Funds            756    825     396      451     524      644
                    Minority Interest                 -      -       -        -       -       -
                    Total Loans                    106     25     430      431     431       25
                    Deferred Tax Liability          (2)    10      (7)       6       6        6
                    Total Liabilities              860    860     819      889     961      676
                    APPLICATION OF FUNDS
                    Gross Block                    453    512     548      594     758      872
                    Less: Acc. Depreciation        212    234     266      290     342      402
                    Net Block                      241    278     282      304     416      470
                    Capital Work-in-Progress        10      6      10       12      16       18
                    Goodwill                          -      -       -        -       -       -
                    Investments                    381    423     491      545     485      125
                    Current Assets                 552    539     529      625     799      946
                    Cash                            44     41      23       29      33       60
                    Loans & Advances               161    195     198      228     266      302
                    Other                           13     14       6       14      25       35
                    Current liabilities            348    413     492      597     754      883
                    Net Current Assets             205    126      37       29      45       63
                    Misc. Exp. not written off      23     27        -        -       -       -
                    Total Assets                   860    860     819      889     961      676




November 11, 2011                                                                             8
                                                                 Britannia | 2QFY2012 Result Update



                    Cash flow statement
                    Y/E March (` cr)                    FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E
                    Profit before tax                     232     233     121     198     252     368
                    Depreciation                           29      33      38      45      52      60
                    Change in Working Capital            (140)     0.5    100       7      60      32
                    Interest / Dividend (Net)             (11)     (5)    (25)     13       3      15
                    Direct taxes paid                      41      52      73      53      68      99
                    Payment of VRS/ other comp.             2      (3)     33        -       -       -
                    Profit on sale of invest/FA (Net)       7       7      12      20        -       -
                    Others                                (21)     26       2        -    (89)    (56)
                    Cash Flow from Operations              43     224     183     190     210     320
                    (Inc.)/ Dec. in Fixed Assets          (55)    (55)    (40)    (47)   (169)   (117)
                    (Inc.)/ Dec. in Investments           (61)    (42)    (68)    (54)     60     360
                    Cash Flow from Investing             (116)    (97)   (108)   (102)   (109)    243
                    Issue of Equity                          -       -       -       -       -       -
                    Inc./(Dec.) in loans                  101     (81)     (2)      2        -   (406)
                    Dividend Paid (Incl. Tax)              42      50     112      70      90     112
                    Interest/Dividend paid (Net)           (8)     (1)    (21)     15       7      19
                    Cash Flow from Financing               67    (130)    (93)    (83)    (97)   (537)
                    Inc./(Dec.) in Cash                    (5)     (3)    (17)      5       4      27
                    Opening Cash balances                  49      44      41      23      29      33
                    Closing Cash balances                  44      41      23      29      33      60




November 11, 2011                                                                                    9
                                                            Britannia | 2QFY2012 Result Update



                    Key ratios
                    Y/E March                      FY2008 FY2009 FY2010 FY2011E FY2012E FY2013E
                    Valuation Ratio (x)
                    P/E (on FDEPS)                   30.3   32.1   49.7    39.9    31.5    21.5
                    P/CEPS                           25.1   24.7   28.9    30.5    24.5    17.6
                    P/BV                              7.7    7.0   14.6    12.8    11.1     9.0
                    Dividend yield (%)                2.2    1.8    1.7     1.3     1.1     1.0
                    EV/Sales                          2.2    1.8    1.7     1.3     1.1     1.0
                    EV/EBITDA                        24.3   21.4   34.7    25.1    19.6    13.7
                    EV / Total Assets                 6.6    6.6    6.8     6.3     5.9     8.3
                    Per Share Data (`)
                    EPS (Basic)                      16.0   15.1    9.8    12.2    15.4    22.5
                    EPS (fully diluted)              16.0   15.1    9.8    12.2    15.4    22.5
                    Cash EPS                         19.3   19.6   16.8    15.9    19.8    27.5
                    DPS                               3.6    8.0    5.0     6.5     8.0    10.6
                    Book Value                       63.3   69.0   33.2    37.8    43.8    53.9
                    Returns (%)
                    RoCE                             27.4   26.7   14.8    20.9    25.3    43.0
                    Angel ROIC (Pre-tax)             24.3   22.3   15.0    15.8    19.1    33.3
                    RoE                              29.5   25.4   26.7    34.3    37.8    46.0
                    Turnover ratios (x)
                    Asset Turnover (Gross Block)      5.7    6.1    6.2     7.1     6.6     6.7
                    Inventory / Sales (days)          43     30      29      27     32      32
                    Receivables (days)                 7      6       4       5      5       5
                    Payables (days)                   35     31      33      33     35      35
                    WC (ex-cash) (days)               23     19       8       5      8       8




November 11, 2011                                                                            10
                                                                                              Britannia | 2QFY2012 Result Update




 Research Team Tel: 022 - 39357800                   E-mail: research@angelbroking.com                    Website: www.angelbroking.com

 DISCLAIMER

 This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
 decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
 such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
 referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
 risks of such an investment.

 Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
 investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
 document are those of the analyst, and the company may or may not subscribe to all the views expressed within.

 Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
 trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
 fundamentals.

 The information in this document has been printed on the basis of publicly available information, internal data and other reliable
 sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
 document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
 responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
 Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,
 nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While
 Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,
 compliance, or other reasons that prevent us from doing so.

 This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
 redistributed or passed on, directly or indirectly.

 Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or
 other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in
 the past.

 Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
 connection with the use of this information.

  Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
  latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have
  investment positions in the stocks recommended in this report.




  Disclosure of Interest Statement                                               Britannia
  1. Analyst ownership of the stock                                                  No
  2. Angel and its Group companies ownership of the stock                            No
  3. Angel and its Group companies' Directors ownership of the stock                 No
  4. Broking relationship with company covered                                       No

  Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors


 Ratings (Returns):              Buy (> 15%)                            Accumulate (5% to 15%)                     Neutral (-5 to 5%)
                                 Reduce (-5% to 15%)                    Sell (< -15%)


November 11, 2011                                                                                                                         11

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:4
posted:11/15/2011
language:English
pages:11