₹747.95 apiece on the BSE.Bikaji Foods International is a heavyweight in the rapidly expanding Indian savoury snacks market. It is the third-largest player in the organised ethnic snacks market, market leader in family packs and leader in its core states: Rajasthan, Assam and Bihar.
Nuvama Equities initiated coverage on Bikaji Foods shares with a ‘Buy’ rating and a target price of ₹885, implying an upside potential of 23% from Thursday’s closing price.Also Read: Stock to buy: Anand Rathi initiates coverage on Bikaji Foods shares with a ‘Buy’ call, sees 24% upside“Savoury snacks are in demand due to shifting consumer preferences. Besides, growing popularity of ethnic snacks and consolidation of the unorganised sector shall continue to spice up Bikaji's growth over coming years, Nuvama Equities said.All in all, it believes Bikaji Foods is in a ‘sweet’ spot to grow given its wide menu.“Success has only whetted its appetite.
The company not only aspires to retain its leadership, but to enlarge its market share in the focus states to high-single digits from 1–2% now. With capex largely incurred, rising asset utilisation shall propel its RoCE to 32% by FY27E.
Insatiable scope for savoury snacks, brand equity, favourable trends and expansion make it covetable," Nuvama said.The Indian market for savoury snacks is projected to expand at a CAGR of 11% to ₹1.2 lakh crore over FY24–27E. Nuvama Equities believes Bikaji Foods is poised to outgrow the industry with an 18% CAGR over FY24–27E, powered by volume growth of 14–15% annually.
Also Read: IT stocks in focus after Accenture's Q3 results“The company shall take 2–4% price hikes going ahead. We forecast an EBITDA CAGR of 23%, translating to an EBITDA margin of 15% in FY27E
. Read more on livemint.com