'Buy' Bikaji Foods Shares Maintains Dolat Capital Post Inline Results, Hikes Target Price — Here's Why
Given the recent price hikes, stable raw material prices and resurgence of volume growth Dolat Capital believes Bikaji Foods' margins to improve
Bikaji Foods' posted double-digit growth of 11.2% YoY in ethnic snacks, while the packaged sweet/ western snacks/ papad segment grew by 3.1/ 4.2/ 5.8%.
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.
Dolat Capital Report
Bikaji Food International Ltd.’s Q1 FY26 revenue was in line, while Ebitda and adjusted profit after tax were ahead of our estimates. Revenue (inc. production linked incentive) grew by 14.2% YoY to Rs 6.5 billion, while ex- PLI, revenue grew by 14.9% YoY with 7.5% volume growth. We believe that volume growth will be the primary driver of revenue growth in the near term.
The company posted double-digit growth of 11.2% YoY in ethnic snacks, while the packaged sweet/ western snacks/ papad segment grew by 3.1/ 4.2/ 5.8%.
Though Q1 FY26 profitability was ahead, we have maintained our FY26/27E EPS at Rs 12.0/14.7 as our estimates have already factored in improvement in the demand environment.
We believe that margins would improve here on given the recent price hikes, stable raw material prices and resurgence of volume growth. Maintain ‘Buy’ rating with revised target price of Rs 959 (Rs 855 earlier), valuing at 65x FY27E.
As our confidence in the business has increased, we revise the target multiple upwards.
Click on the attachment to read the full report:
ALSO READ
'Add' Canara Bank Shares Maintains Dolat Capital Post Healthy Q1 Results — Check Target Price
DISCLAIMER
This 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.
