Ajcon Global IPO report on Mrs. Bectors Food Specialities
Mrs. Bectors Food Specialities Limited incorporated in Sept. 15, 1995, is one of the leading companies in the premium and mid‐premium biscuits segment and the premium bakery segment in North India. The company manufactures and market a range of its biscuits such as cookies, creams, crackers, digestives and glucose under its flagship brand ‘Mrs. Bector’s Cremica’. The Company manufactures and sells various types of premium bakery products in savory and sweets categories for retail customers such as breads, buns, pizza bases, and cakes under the "English Oven‟ brand which has witnessed a CAGR of 29 percent in the last two Financial Years and is the largest selling brand in Delhi, NCR, Mumbai, Bangalore. The company supplies its products to retail consumers in 26 states within India, as well as to reputed institutional customers with pan‐India presence and to 64 countries across 6 continents during the Financial Year ended March 31, 2020. The company has received several quality certifications from including certificate of registration from the U.S. Food and Drug Administration, the British Retail Consortium (BRC) food certification, Sedex Members Ethical Trade Audit (SMETA), Food Safety System certification 22000 and Halal certification for manufacturing biscuits, which helps in the acceptability of its products in developed and quality conscious export markets.
Valuation and Outlook
At the upper end of the price band of Rs. 288, the company's IPO is valued at P/E of 56x on FY20 EPS which is expensive and P/E of 22x on annualised H1FY21 EPS which looks decent. The Company will always enjoy premium post listing owing to its dominance in the premium biscuit segment with established brands. We recommend 'subscribe' to the issue.
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