The broking firm Jefferies slashed the target price on the stock of Britannia by 0.9% to Rs 5,500 from Rs 5,550. The brokerage house has maintained the “Buy” rating on Britannia. 

Also, the broking firm has maintained the FY25-26 earnings per share estimates owing to a “higher volume growth trajectory is offset by limited margin expansion hereon.” It believes the company’s earnings per share estimates to grow 12% over FY23-26.

Jefferies expects the company’s revenue to grow by 8%, with a 240 basis points margin expansion over FY23-26.

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The company successfully overcame the inflationary headwinds, leading to improved market share and margins. The company was on track to become a ‘total foods company’.

Jefferies said the management’s strategy to prioritize growth as the right move because the FMCG industry has maximised the margins over the decade. 

The continued rural demand weakness and increase in input prices are seen as the key risks for the company by the brokerage. 

According to the company’s management, “urban markets continue to grow ahead of rural; focus states grew 2.4x faster vs. rest of India.”