Diwali Ideas: Why Sunny Agrawal is betting on Mrs Bector’s Food, Kolte Patil & ICICI Bank
Sunny Agrawal, Head of Fundamental Equity Research, SBI Securities, “for FY23, Mrs Bector’s has reported net sales of around Rs 1,362 crore and net profit of Rs 90 crore. Our estimate suggests that sales are likely to expand from Rs 1,362 crore in FY23 to Rs 1,891 crore, almost Rs 1,900 crore in FY25 and net profit of Rs 90 crore from FY23 to Rs 167 crore in FY25. ”
Just going through some of the buy calls that you are issuing out. I just wanted to get a sense of names like Mrs Bectors Food right now. I have picked up this one because you have already seen a massive rally in the stock year to date. How much more of an upside do you think the stock can garner on a 12-month basis? And what makes you so bullish on this story?
My price target for Mrs Bectors Food is around Rs 1358. As we all know, Mrs Bectors Food is one of the leading players in the biscuit and bakery category in North India. Their biscuit brand is Cremica and on bakery side, English Oven is the brand which they are riding the rally on.
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Looking at the success in North India, they are now expanding on a pan India basis. Many plants are likely to get commercialized over the next six to 12 months. One of the lines of biscuit in Punjab is likely to get commercialized in this quarter. Then there is a plan to expand the capacity of the biscuit line in MP. That plant is likely to get ready by FY25.
In addition to that, one bakery plant in NCR with an estimated capex cost of Rs 33 crore is likely to get commissioned
