Bakery and dairy products maker Britannia Industries shares gained nearly 2 percent intraday Tuesday after JP Morgan has initiated coverage with an overweight rating and a December 2017 target price of Rs 3,500, implying 18 percent potential upside. It is a leading packaged foods company and benefits from a rising focus on innovation, astute marketing and good execution, which should continue to support market-share gains and mix enhancements, the brokerage house says. In near term, even as demonetization keeps 2HFY17 performance volatile, JP Morgan expects growth rates to improve over FY18 and find current levels to be a good entry opportunity for long term investors.
It also expects revenue momentum to sustain a 13 percent CAGR with modest margin expansion driving a 16 percent EPS CAGR over FY16-19. Strong free cash flow generation, healthy return ratios and potentially higher dividends are other positive drivers, it says. At 11:52 hours IST, the stock was quoting at Rs 2,999.95, up Rs 42.40, or 1.43 percent on the BSE.
Bakery and dairy products maker Britannia Industries shares gained nearly 2 percent intraday Tuesday after JP Morgan has initiated coverage with an overweight rating and a December 2017 target price of Rs 3,500, implying 18 percent potential upside. It is a leading packaged foods company and benefits from a rising focus on innovation, astute marketing and good execution, which should continue to support market-share gains and mix enhancements, the brokerage house says. In near term, even as demonetization keeps 2HFY17 performance volatile, JP Morgan expects growth rates to improve over FY18 and find current levels to be a good entry opportunity for long term investors. 
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