⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BRITANNIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | BRITANNIA | Market Cap | 1,41,688 Cr. | Current Price | 5,885 ₹ | High / Low | 6,337 ₹ |
| Stock P/E | 58.2 | Book Value | 136 ₹ | Dividend Yield | 1.27 % | ROCE | 56.8 % |
| ROE | 58.0 % | Face Value | 1.00 ₹ | DMA 50 | 5,951 ₹ | DMA 200 | 5,819 ₹ |
| Chg in FII Hold | -0.14 % | Chg in DII Hold | 0.16 % | PAT Qtr | 688 Cr. | PAT Prev Qtr | 690 Cr. |
| RSI | 45.9 | MACD | -38.0 | Volume | 3,13,919 | Avg Vol 1Wk | 5,46,670 |
| Low price | 4,525 ₹ | High price | 6,337 ₹ | PEG Ratio | 5.68 | Debt to equity | 0.66 |
| 52w Index | 75.0 % | Qtr Profit Var | 23.5 % | EPS | 101 ₹ | Industry PE | 49.4 |
📊 Financials
- Revenue Growth: PAT stable at 688 Cr. vs 690 Cr., showing consistency
- Profit Margins: EPS at 101 ₹, strong profitability
- Debt Ratios: Debt-to-Equity 0.66, moderate leverage
- Cash Flows: Healthy, supported by FMCG demand
- Return Metrics: ROE 58.0%, ROCE 56.8% — excellent efficiency
💹 Valuation
- P/E Ratio: 58.2 (premium vs Industry PE 49.4)
- P/B Ratio: ~43.3 (very high, reflects strong brand equity)
- PEG Ratio: 5.68 (suggests overvaluation relative to growth)
- Intrinsic Value: Current price (5,885 ₹) near DMA 200 (5,819 ₹), but below DMA 50 (5,951 ₹), showing mild technical weakness
🏢 Business Model & Competitive Advantage
- Leading FMCG company with strong presence in biscuits, bakery, and dairy products
- Competitive advantage in brand strength, distribution, and product innovation
- High ROE and ROCE highlight strong operational efficiency
- Valuation stretched despite consistent earnings
📈 Entry Zone Recommendation
- Entry Zone: 5,800–5,900 ₹ (near support levels, RSI at 45.9)
- Long-Term Holding: Attractive due to strong fundamentals and brand dominance, but caution due to premium valuation
✅ Positive
- Strong ROE (58.0%) and ROCE (56.8%)
- DII holding increased (+0.16%)
- Consistent quarterly PAT
- Dividend yield at 1.27% adds investor appeal
⚠️ Limitation
- High P/E ratio compared to industry
- PEG ratio suggests overvaluation
- Moderate debt-to-equity ratio (0.66)
📉 Company Negative News
- FII holding decreased (-0.14%)
- Technical weakness with MACD negative (-38.0)
📈 Company Positive News
- DII holding increased (+0.16%)
- Strong dividend yield supports investor confidence
- Stable quarterly PAT performance
🏭 Industry
- FMCG industry growing steadily with rising packaged food demand
- Industry PE at 49.4, Britannia trades at a premium
🔎 Conclusion
Britannia is a leading FMCG company with excellent return ratios and strong brand equity. Despite consistent profitability, valuations are stretched with a P/E of 58.2 and PEG of 5.68. Entry around 5,800–5,900 ₹ may be considered, and long-term investors can hold for brand-driven growth and dividend income, while monitoring debt levels and valuation risks.