Top Conviction Ideas : Buy Britannia Industries Ltd for Target Rs. 6,750 - Axis Securities Ltd
Recommendation Rationale
* Resilient Performance amid Transitional Headwinds: Britannia posted a steady 4.1% YoY revenue growth in Q2FY26, supported by stable input costs and ongoing efficiency gains. While the GST rate cut across most of its portfolio should aid medium-term volumes, the quarter saw temporary supply-chain and trade disruptions. Management remains focused on driving volume-led growth through deeper distribution, innovation, and continued investments in core and adjacencies.
* Outlook: Most FMCG players like Britannia are seeing early demand recovery across urban and rural markets, supported by stable input costs and improving margins. The recent GST cuts on key food items should enhance affordability, lift consumer sentiment, and drive stronger traction in daily-use and low-unit-price SKUs. With the festive season ahead, demand is expected to accelerate, positioning branded FMCG and discretionary categories for healthier volume growth in the near term.
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