Up 47% in 2.5 months; Bikaji Foods is MarketsMojo's pick of the month for June

livemint.com:

Bikaji Foods International as its top pick of the month for June. The brokerage believes it is a good pick for medium-risk investors expecting high returns. It also advised investors to have less than 30 percent weightage in this sector.The brokerage pointed out that Bikaji Foods has been a pioneer in India's ethnic snacks industry, holding a 9.6 percent market share as of September 2023.

Under the government's PLI scheme, the company has invested accordingly and received a benefit of ₹93.6 crore. Without further investments, Bikaji is set to receive PLI benefits for the next three years. Currently, only about 45 percent of its capacity is utilized, indicating the potential to double sales volume at no extra cost, it stated.

With targeted volume growth of 13-15 percent and price hikes of 2-4 percent for FY2025, Bikaji Foods aims for high teen growth, expecting strong revenues and improved profitability, added the brokerage.Read here: Stock in focus: Rajesh Palviya of Axis Securities recommends three stocks todayIt further said that with expectations of a favourable monsoon and anticipated rate cuts in the second half of CY2024, the FMCG sector is expected to grow well in FY2025.The stock has risen 72 percent in the last 1 year and 32 percent in 2024 YTD, giving positive returns in 4 of the 6 months so far. The scrip has jumped over 21 percent in June so far, extending gains for the 3rd straight month. It advanced 11.5 percent in May and 8.6 percent in April.

Meanwhile, the stock shed 6 percent in March and 11.8 percent in February. Before that the stock was positive, rising 8.3 percent in January this year.The stock also hit its record high of ₹727.95 in the previous session. Currently trading at ₹720, it has rallied 78