Shares of Bikaji Foods International jumped over 9% on May 24 after the company reported a huge 200% increase in net profit, reaching Rs 116.3 crore, and a 12.8% rise in revenue, totaling Rs 520.8 crore for the quarter ending March 2024.
Bikaji’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 10.2% year-on-year to Rs 67.5 crore, with a margin of 13% for the quarter. The company also announced a final dividend of Rs 1 per share.
Bikaji Foods International, the third-largest ethnic snacks company in India, specializes in Indian snacks and sweets. For the fiscal year 2024, the company’s EBITDA margin stood at 16.8%, thanks to lower commodity prices, a better product mix, operating leverage, and efficient cost management.
By 1:50 pm, Bikaji Foods shares were up 4.6%, trading at Rs 559.25 on the National Stock Exchange (NSE). Over the past year, the stock has risen about 46%, outperforming the Nifty 50 index, which has gained 25% in the same period.
Earlier this month, Emkay Global began coverage on Bikaji Foods with a ‘buy’ rating and a target price of Rs 650 per share by March 2025, suggesting a 21% increase from the previous close.
The brokerage noted, “Bikaji’s improved brand image and better product mix position it well to benefit from the rapidly growing Indian snacks market, which is set for double-digit growth.”
Emkay Global expects mid-teens sales growth for Bikaji, driven by the company’s expanding distribution in key markets.
Bikaji has also expanded into the Frozen Foods sector, which is becoming more popular in India and offers export opportunities. With this scale, Bikaji aims to enter India’s quick-service restaurant (QSR) segment.
“With Bikaji’s improved sales mix, operating leverage, and cost efficiency, we expect its margin (excluding the Production Linked Incentive) to rise by 220 basis points, supporting approximately 32% annual earnings growth from FY24 to FY26,” Emkay stated in its report.
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