Britannia Industries Limited

Consumer Defensive — Packaged Foods · NSE

₹4,764.00−₹86.00 (−1.77%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Britannia Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Britannia Industries Limited engages in manufacturing, trading, and sale of various food products in India and internationally.

IndustryPackaged Foods

SectorConsumer Defensive

Employees5,682

Annual revenue₹18,858 Cr

How does it make money?

Turns over ₹18,858 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 5,682 employees supports ₹3.32 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.32 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 61.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 49.6% against a peer median of 17.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.2%

What is the outlook?

31 analysts covering the stock expect revenue to grow about 10.3% and earnings to grow about 14.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.3%

Est. earnings growth+14.0%

Analysts31

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +18% while net margin moved -8% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+18%

Margin effect-8%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.7% — barely ahead of inflation
✗ Profit CAGR of only 3.0%

Quality vs. Valuation

Company Quality

65/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

53/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

44.1x

3Y Median

57.5x

40 monthly readings · mean 57.3x · range 45.3x–71.3x

Sector Median

59.3x

median of 3 sector peers

🟢Current valuation is approximately 23% below its 3y median of 57.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 26% below the peer median of 59.3x.

vs. its own history

Cheap

57.5x median over 40 months · -23%

vs. sector peers

Cheap

59.3x median of 3 peers · -26%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

31.5x

PEG

14.93

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 54% over 3 years.
Cash generation is improving
Free cash flow is up 33% over 3 years.
High return on capital employed
ROCE of 61.2% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 65.7% to 49.6% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 43% against revenue up 18% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 61.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 54% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 23% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 26% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹2,406 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 43% against revenue up 18%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 5.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 65.7% to 49.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 18%✓ 19.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.7% CAGR
Latest reported year was 8.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹2,406 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 58%✓ 61.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹1.15 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

44.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

22.47x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹108.11

Profitable

Profitable on a per-share basis

ROE

49.6%

Strong

Strong capital efficiency

ROCE

61.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

8.2%

Modest

Modest growth

Profit Growth (YoY)

13.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.90%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹2,406 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

36.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

15.2%

Good

Healthy core-business profitability

Net Margin

13.4%

Good

Strong bottom-line conversion

Current Ratio

1.12

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

4859.0 / 5120.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15,985 Cr	₹16,546 Cr	₹17,535 Cr	₹18,858 Cr	+5.7%
EBITDA	₹3,011 Cr	₹3,353 Cr	₹3,318 Cr	₹3,684 Cr	+7.0%
EBITDA Margin	18.8%	20.3%	18.9%	19.5%	—
PAT (Net Profit)	₹2,322 Cr	₹2,140 Cr	₹2,179 Cr	₹2,533 Cr	+3.0%
EPS	₹96.39	₹88.84	₹90.45	₹105.18	+3.0%
ROE	65.7%	54.3%	50.0%	49.6%	—
ROCE	61.3%	61.6%	58.7%	61.2%	—
Total Debt	₹3,008 Cr	₹2,075 Cr	₹1,264 Cr	₹1,398 Cr	-22.5%
Free Cash Flow	₹1,815 Cr	₹2,020 Cr	₹2,116 Cr	₹2,406 Cr	+9.9%

🟢 Revenue has grown at 5.7% a year over 3 years.

🟢 EBITDA has grown at 7.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 19.5% over 3 years.

🟢 PAT (Net Profit) has grown at 3.0% a year over 3 years.

🟢 EPS has grown at 3.0% a year over 3 years.

🔴 ROE has fallen from 65.7% to 49.6% over 3 years (-16.1 pts).

🟡 ROCE has held roughly flat at 61.2% over 3 years.

🟢 Total Debt has shrunk at 22.5% a year over 3 years.

🟢 Free Cash Flow has grown at 9.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9,732 Cr

Total Liabilities

₹4,596 Cr

Cash & Equivalents

₹220 Cr

Operating Cash Flow

₹2,612 Cr

Capex

-₹206 Cr

Shareholding (proxy)

Institutional Holding

24.9%

Insider Holding

51.2%

Corporate Actions

Next Earnings

05 Nov 2026

Dividend Rate

₹90.5

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

24 Buy · 7 Hold · 2 Sell

Target Price (Mean)

₹6,190.55

+29.9% vs CMP

Target Range

₹5,100 – ₹7,260

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

1 positive4 mixed1 general

Britannia shares jump 5% after Q1 nos; Nomura retains 'Buy' for 20% upside

Business Standard, 07 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Britannia Industries (BRITANNIA) Share/Stock Price Live, NSE

TechGraph, 24 Sept

Nestle vs ITC vs Britannia vs Marico: Which FMCG stock to buy before their Q2 results? Target price, earning expectation

Livemint, 12 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

BRITANNIA Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Britannia Industries shares jump 5% post-Q1 results; Nomura sees up to 20% upside

Moneycontrol.com, 07 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Britannia Industries Q1 Profit Surges on Robust Volumes; Shares Jump

Global Banking & Finance Review, 07 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Risk

WeakGrowth · Valuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑