Check Before You Invest : Britannia Industries Ltd

BSE: 500825 NSE: BRITANNIA ISIN: INE216A01030

| Sector: FMCG | Industry: Consumer Food

Snapshot

Q.1 Which industry/sub-sector does Britannia Industries Ltd belong to?

Britannia Industries Ltd belongs to the FMCG sector, operating specifically within the Consumer Food segment.

Q.2 Is Britannia Industries Ltd a good quality company?

Britannia Industries Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Britannia Industries Ltd undervalued or overvalued?

Britannia Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Britannia Industries Ltd a good buy now?

Britannia Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Britannia Industries Ltd?

Britannia Industries Ltd revenue growth is 7% for FY-2025, which is below its 5-year CAGR of 9.12%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Britannia Industries Ltd?

Britannia Industries Ltd Return on capital employed is 53.02% for FY-2025, which is above its 5-year historical median of 49.25%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Britannia Industries Ltd?

Britannia Industries Ltd Return on Asset is 24.43%, which is in line with its 5-year historical median of 23.39%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Britannia Industries Ltd?

Britannia Industries Ltd Return on equity is 52.5% for FY-2025, which is in line with its 5-year historical median of 52.5%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Britannia Industries Ltd?

Britannia Industries Ltd Cash conversion cycle is -12 days, below its 5-year historical median of -10 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	2.11	1.92
ROE	52.5	52.5
ROCE	53.02	49.25
Cash Conversion Cycle	-12 days	-10 days

Q.6 Gross Profit margin of Britannia Industries Ltd?

Britannia Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.4% for FY-2025, which is in line with its 5-year median of 17.4%, indicating stable margins.

Q.7 Operating Profit Margin of Britannia Industries Ltd?

Britannia Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.76% for FY-2025, which is in line with its 5-year median of 17.76% indicating stable margins.

Q.8 Net Profit Margin of Britannia Industries Ltd?

Britannia Industries Ltd Net Profit Margin is 12.14% for FY-2025, is in line with with its 5-year median of 12.73%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	17.4	17.4
Operating Profit Margin	17.76	17.76
Net Profit Margin	12.14	12.73

Q.9 Debt to Equity ratio of Britannia Industries Ltd?

Britannia Industries Ltd Debt-to-Equity ratio is 0.28, which is lower with the industry average of 0.6, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Britannia Industries Ltd?

Britannia Industries Ltd Debt to cash flow from operations is 0.49, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Britannia Industries Ltd?

Promoters hold 50.55% of the Britannia Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Britannia Industries Ltd vs industry peers?

Britannia Industries Ltd revenue CAGR is 9.12%, compared to the industry median CAGR of 10.31%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	7	10.3
Gross Profit Growth	1.7	9.9
Operating Profit Growth	0.5	11.6
Net Profit Growth	2.1	11

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	2.11	1.89
ROE	52.5	52.5
ROCE	53.02	49.25
Cash Conversion Cycle (days)	-11.7	-10

Valuation & price assessment

Q.1 Stock return of Britannia Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 15.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	15.1%	10.8%	7.7%	7.9%

Q.3 Valuation ratios of Britannia Industries Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	57.11	55.59	26.64
Price to Book	31.21	33.23	2.52
Price to Sales	7.44	7.35	1.43
EV to EBITDA	37.5	38.28	14.44

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