Bikaji Foods surges 9% on robust Q4 results; Emkay Global sees 21% upside

In the last one year, Bikaji Foods stock has risen around 46 percent, outperforming benchmark Nifty 50 which has risen 25 percent during this period.

Shares of Bikaji Foods International zoomed over nine percent on May 24 after the firm posted a massive 200 percent jump in net profit at Rs 116.3 crore and revenue from operations rose 12.8 percent YoY to Rs 520.8 crore in the quarter ended March 2024.

Bikaji's EBITDA rose 10.2 percent on-year to Rs 67.5 crore during the quarter under review, while margin stood at 13 percent in the said quarter. The board of the company also approved a final dividend of Rs 1 per equity share.

Bikaji Foods International is the third largest ethnic snacks company in India, selling Indian snacks and sweets. On the bottom-line front, the snack maker's EBITDA margin for FY24 stood at 16.8 percent, led by reduction in commodity prices, superior mix, operating leverage and effective cost management.

Follow our market blog to catch all the live action

At 1:50 pm, Bikaji Foods shares were trading 4.6 percent higher at Rs 559.25 on the National Stock Exchange (NSE). In the last one year, the stock has risen around 46 percent, outperforming benchmark Nifty 50 which has risen 25 percent during this period.

Earlier this month, Emkay Global initiated coverage on Bikaji Foods stock with a 'buy' rating and March 2025 target price of Rs 650 per share, implying a 21 percent upside from the previous close.

"An enhanced brand image and better pack-mix place Bikaji at an advantage to leverage the swiftly evolving Indian savory snacks story set for double-digit growth," the brokerage said.

Analysts at Emkay build-in mid-teens sales growth, likely to elevate further, backed by the company’s distribution drive across core & focus markets.

Also Read | Bikaji Foods International's Q4 net profit surges 200% to Rs 116.3 crore

Bikaji has built capacity in the Frozen Foods space, which is not only fast gaining acceptance in India but holds opportunities to enhance exports too, it said, adding that with scale, Bikaji is likely to meet its aspirations, gaining access to India’s QSR segment.

"Given Bikaji’s better sales mix, operating leverage, and cost efficiency, we see its margin (ex PLI) rising by 220bps, thus aiding ~32% earnings CAGR over FY24-26E," Emkay said in its report.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.