Bikaji Foods, Gopal Snacks, Prataap Snacks Gets Motilal Oswal's 'Buy' Initiation — Check Target Price

Motilal Oswal has initiated coverage on four packaged food companies, highlighting strong structural growth drivers in India’s processed food sector..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Motilal Oswal has initiated coverage on four packaged food companies, highlighting strong structural growth drivers in India’s processed food sector. The brokerage assigns 'Buy' ratings to Bikaji Foods International Ltd., Gopal Snacks Ltd. and Prataap Snacks Ltd., while Mrs. Bectors Food Specialities receives a Neutral rating..India’s food and food processing sector, valued at Rs 86.8 lakh crore in FY24, is projected to grow to Rs 109.6 lakh crore by FY27. The food processing industry, which accounts for ~35% of the total food sector, is expected to clock a CAGR of ~9.7% over FY24–27. Within this sector, packaged foods make up ~30-32% of the industry. The packaged food market is expected to record a CAGR of ~11%, which consist of staples (37%), other packaged food (35%), dairy (20%), beverages (6%), and meat (2%)..Bikaji Foods is positioned for industry-leading growth, supported by its pan-India distribution network, strong ethnic snack portfolio, and expansion into western snacks and frozen foods. Motilal Oswal forecasts 15% revenue CAGR and 39% PAT CAGR over FY25–28, reiterating a Buy with a DCF-based target price of Rs 900 (55x FY28E P/E)..Gopal Snacks is expected to deliver robust growth through product diversification beyond gathiya and distribution expansion. The brokerage projects 12% revenue CAGR and assigns a Buy with a target price of Rs 400 (40x FY28E P/E)..Prataap Snacks is seen as a turnaround story, with plant consolidation and automation driving margin improvement. Motilal Oswal estimates 11% revenue CAGR and initiates Buy with a target price of Rs 1,500 (45x FY28E P/E)..Mrs. Bectors, a premium biscuit player, is expected to grow steadily but faces valuation constraints. The brokerage initiates Neutral with a target price of Rs 280 (34x FY28E P/E)..Key risks:Weak macroeconomic conditions may dampen consumer spending,volatility in raw materials affecting costs and margins,intensifying competition from both organized and unorganized players, andprice wars and competitive pressure may adversely impact profitability..Click on the attachment to read the full report:.Adani Ports Poised For Long-Term Growth Says Motilal Oswal; Sees 22% Upside — Check Revised Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bikaji Foods, Gopal Snacks, Prataap Snacks Gets Motilal Oswal's 'Buy' Initiation — Check Target Price

Motilal Oswal has initiated coverage on four packaged food companies, highlighting strong structural growth drivers in India’s processed food sector.

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