Bikaji Foods International saw a significant surge in its stock price by over nine percent on May 24 following its robust financial performance. The company reported a remarkable 200 percent increase in net profit, reaching Rs 116.3 crore, while revenue from operations climbed by 12.8 percent year-over-year to Rs 520.8 cr for the quarter ending March 2024.
During this period, Bikaji’s EBITDA witnessed a notable uptick of 10.2 percent compared to the previous year, reaching Rs 67.5 crore, with a margin of 13 percent for the quarter. Additionally, the company’s board approved a final dividend of Rs 1 per equity share.
Bikaji Foods International holds the position of the third largest ethnic snacks company in India, renowned for its array of Indian snacks and sweets. Notably, for the fiscal year 2024, the company achieved an EBITDA margin of 16.8 percent, attributed to various factors including the decline in commodity prices, a favorable product mix, operational efficiency gains from increased scale, and effective cost management.
As of 1:50 pm, Bikaji Foods shares were trading at Rs 559.25 on the National Stock Exchange (NSE), marking a 4.6 percent increase. Over the past year, the stock has demonstrated impressive growth, soaring by approximately 46 percent, surpassing the Nifty 50 benchmark, which rose by 25 percent during the same period.
In recent developments, Emkay Global initiated coverage on Bikaji Foods stock, issuing a ‘buy’ rating with a target price of Rs 650 per share by March 2025. This projection suggests a 21 percent potential upside from the previous closing price. The brokerage emphasized Bikaji’s enhanced brand image and improved pack mix, positioning the company advantageously to capitalize on the rapidly evolving Indian savory snacks market, which is poised for double-digit growth.
Emkay’s analysts anticipate mid-teens sales growth for Bikaji, with further potential uplift supported by the company’s strategic distribution expansion across its core and focus markets. This optimistic outlook underscores confidence in Bikaji’s growth trajectory and its ability to sustain momentum in the competitive snacks industry.
Bikaji has expanded its capabilities in the Frozen Foods sector, which is rapidly gaining popularity in India and presents prospects for increased exports. The company is poised to realize its ambitions, potentially accessing India’s Quick Service Restaurant (QSR) segment as it scales up.
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Emkay noted Bikaji’s improved sales mix, operational leverage, and cost-effectiveness. They anticipate a notable 220 basis points rise in Bikaji’s margin (excluding PLI benefits), contributing to an approximate 32% compound annual growth rate (CAGR) in earnings from FY24 to FY26. This positive outlook reflects Bikaji’s strong position to leverage market trends and sustain growth and profitability.
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