Britannia Industries Limited

BRITANNIA.BO•packaged-foods

Current Price

6,146.20INR

per share

Fair Value

1,570.55INR

Overvalued

291.3%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 8.59%, lower than industry average of 8.86%.

Growth Trajectory

Profitability

In the growth phase company makes 15.89% profit on every dollar of sales, higher than industry average of 8.45%.

Profitability Trajectory

Risk Profile

Investors expect at least 6.65% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

377.40B INR

Equity Value

378.29B INR

FCF Yield

16.26%

Average ROIC

40.09%

Cost of Capital

7.46%

P/E Ratio

65.82x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	179.40B INR	165.46B INR
Operating Income or EBIT	30.81B INR	30.78B INR
Interest Expense	1.33B INR	1.62B INR
Book Value Of Equity	43.56B INR	39.42B INR
Book Value Of Debt	12.64B INR	20.75B INR
Cash and Marketable Securities	13.77B INR	20.97B INR
Number of Shares Outstanding	240.87M	--
Minority interests	245M INR	0 INR
Current Stock Price	6146.20 INR	--
Effective Tax Rate	27.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

-0.44%

8.42%Company

8.86%Industry

At Industry Level

Operating Margin

+8.73%

17.17%Company

8.44%Industry

Above Industry

Britannia Industries Limited demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.88%

Reinvestment Rate

52.36%

Terminal value represents 60% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	225.92B INR	Add
Present Value (Cash Flow Over Next 10 Years)	151.48B INR	Add
Value of Operating Assets	377.40B INR	Sub-total
Debt	12.64B INR	Subtract
Minority Interests	245.00M INR	Subtract
Cash	13.77B INR	Add
Value of Equity	378.29B INR	Sub-total
Number of Shares	240.87M shares	Divisor
Estimated Value per Share (Fair Value)	1.57K INR	Total
Current Market Price	6.14K INR	Reference

Financial Projections

Total FCF Present Value

151.48B INR

Avg Revenue Growth

6.63%

Avg Operating Margin

15.60%

Avg ROIC

40.09%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	196.42B INR	213.29B INR	231.61B INR	251.50B INR	273.10B INR	294.40B INR	315.05B INR	334.66B INR	352.86B INR	369.26B INR	386.43B INR
Growth Rate	9.49%	8.58%	8.58%	8.58%	8.58%	7.80%	7.01%	6.22%	5.43%	4.65%	4.65%
PROFITABILITY
Operating Income	33.73B INR	34.80B INR	36.79B INR	38.87B INR	41.04B INR	44.24B INR	47.34B INR	50.29B INR	53.02B INR	55.49B INR	58.07B INR
Operating Margin	17.17%	16.31%	15.88%	15.45%	15.02%	15.02%	15.02%	15.02%	15.02%	15.02%	15.02%
EBIT (1-tax)	24.62B INR	25.40B INR	26.86B INR	28.37B INR	29.96B INR	32.03B INR	33.99B INR	35.80B INR	37.43B INR	38.84B INR	40.65B INR
CASH FLOW
Reinvestment	6.50B INR	7.05B INR	7.66B INR	8.32B INR	8.21B INR	12.16B INR	11.55B INR	10.72B INR	9.66B INR	10.11B INR	21.28B INR
Free Cash Flow	18.12B INR	18.34B INR	19.19B INR	20.05B INR	21.75B INR	19.86B INR	22.44B INR	25.08B INR	27.77B INR	28.73B INR	19.36B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	457.79B INR
Present Value	16.99B INR	16.12B INR	15.82B INR	15.49B INR	15.76B INR	13.44B INR	14.11B INR	14.61B INR	14.92B INR	14.17B INR	—
EFFICIENCY
ROIC	58.04%	51.92%	47.97%	44.58%	41.62%	39.94%	36.81%	34.46%	32.66%	31.25%	8.88%
Cost of Capital	6.65%	6.65%	6.65%	6.65%	6.65%	7.09%	7.54%	7.98%	8.43%	8.88%	8.88%
Sales/Capital	2.59x	2.59x	2.59x	2.59x	2.59x	1.69x	1.69x	1.69x	1.69x	1.69x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)