LKP Research's research report on Mrs.Bector Foods Specialties
Mrs.Bector Foods Specialties Ltd (MBFSL) reported strong growth of 19.7% YoY in Revenue during the quarter to ₹4,963 mn vs ₹4,145 mn in the year-ago quarter. However EBITDA/ PAT saw growth of 9%/4%, EBITDA growth was the lowest in the last eight quarters due to high freight and raw material prices. In Q3 inflationary pressures intensified further as palm oil prices continues to rise which might further impact its margins. However, the management still maintains its target of 14-15% operating margins on an annualized basis.
Outlook
We expect MBFSL to clock a Revenue/ EBITDA/PAT CAGR of 17%/19%/21% respectively over FY24-26E. Therefore we maintain our ‘BUY’ rating and a TP of ₹2,000 at a PE of 60x of FY26 EPS of ₹33.
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