Buy Mrs Bectors Food Specialities; target of Rs 1750: LKP Research

LKP Research is bullish on Mrs Bectors Food Specialities has recommended buy rating on the stock with a target price of Rs 1750 in its research report dated June 04, 2025.

Broker Research

June 04, 2025 / 10:28 IST

Buy

26 Aug, 2025 12:21

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LKP Research's research report on Mrs Bectors Food Specialities

MBFSL reported 9.8% YoY revenue growth to ₹4.5 bn, with biscuits up 7% and bakery up 19%, though EBITDA fell 5.3% YoY due to input cost pressure. FY25 revenue rose 15.4% YoY to ₹18.7 bn, EBITDA grew 3.7% to ₹2.5 Bn, and PAT increased 2% to ₹1.4 bn; EBITDA margin declined 150 bps to 13.4%. • MBFSL is well-positioned to benefit from near-term demand growth and structural opportunities into FY26, driven by consumer upgradation and optimistic management outlook for H2FY26. The company is expanding its product portfolio with health-focused and innovative offerings gaining traction in modern trade and quick commerce. Supplyside improvements and cost initiatives support a gradual margin recovery, targeting 13– 14% EBITDA margins for FY26.

Outlook

MBFSL delivered a strong 15% sales growth, outperforming peers, driven by its expanding domestic and export markets and robust B2B presence. With a solid FY22–25 CAGR of 24% in revenue and continued focus on premiumisation, new product launches, and capacity expansion, the company is well-positioned for sustained double-digit volume growth. We expect MBFSL to achieve 15%/20%/24% CAGR in Revenue/EBITDA/PAT over FY25–27E and maintain a ‘BUY’ rating with a ₹1,750 target price.

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