Britannia Shares In Focus After Strike In Gujarat Plant Disrupts Operations; Key Points – News18
Last Updated:
The disruption, caused by a worker strike that began on March 24, has prompted Britannia to engage in discussions with employees to resolve the issue peacefully.
Britannia Share Price
Britannia Share Price: Shares of Britannia Industries are expected to be in the spotlight on March 25 following the company’s disclosure of a partial disruption at its Jhagadia manufacturing facility in Gujarat. The disruption, caused by a worker strike that began on March 24, has prompted Britannia to engage in discussions with employees to resolve the issue peacefully.
Over the last six months, Britannia’s stock has fallen over 22%, significantly underperforming the benchmark Nifty 50 index, which has dropped 9% during the same period.
The company has stated that it is currently assessing the impact of the strike while utilizing available resources to minimize any disruption to supply. Britannia has assured investors that it will continue to provide updates to the stock exchanges should any significant developments occur.
In its Q3FY25 results, Britannia reported a net profit of Rs 582.3 crore, primarily driven by strategic price hikes aimed at offsetting rising input costs. This represents a 4.8% year-on-year increase compared to Rs 555.6 crore in Q3 FY24. The company’s quarterly revenue stood at Rs 4,592.6 crore, reflecting a 7.9% growth from Rs 4,256.3 crore in the same period last year.
Britannia’s EBITDA for the quarter was Rs 844.9 crore, marking a modest 2.9% increase from Rs 821.1 crore in Q3 FY24. However, the EBITDA margin slightly declined to 18.4% from 19.3% in the previous year.
Currently, Britannia Industries is covered by approximately 35 brokerages. Of these, 20 have issued a “buy” recommendation, 9 have a “hold,” and 6 have a “sell” rating.
Looking ahead, the management remains optimistic about growth prospects, particularly with expectations of volume expansion recovery. The company aims to maintain its operating profit margin (OPM) within the 17-18% range, supported by strategic pricing adjustments and ongoing cost-efficiency initiatives.
Additionally, Britannia has stated that no major capital expenditures (capex) are planned in the near future. For FY26, the company has allocated Rs 150-200 crore primarily for maintenance-related capex.
Analysts at Mirae Asset Sharekhan remain positive about Britannia’s medium- to long-term growth, citing its strong presence in the snacking category. They maintain a “Buy” rating on the stock, with an unchanged price target of Rs 5,995.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
