Up 40% in a month, brokerage bullish on this FMCG stock; check target and stop loss

Stock to buy: Brokerage AnandRathi Investment Services has initiated coverage on packaged food company Bikaji Foods International Ltd with a buy advisory. The brokerage says that the growth of the company continues to improve. It has also emerged as a strong brand in its category. 

Bikaji Foods: Target price

Brokerage AnandRathi has given a target of Rs 900 per share for the stock for the next 12 months. On June 14, 2024, the share price closed at Rs 725 each. In this way, the stock can get a strong return of about 25 per cent from the current price.

Why brokerage bullish on Bikaji Foods

The brokerage says that the company is spending a lot on brand recall and its strong presence among customers. The company has made Amitabh Bachchan the brand ambassador. The company has launched Bikaji Cafe and Bikaji Funkin brands to promote its western snack segment. The company has an online retail platform and mobile application.

Bikaji Foods' revenue/EBITDA has grown at a CAGR of 21 per cent to 42 per cent between the financial year 2019 to 2024. The product range of the company is strong. Operational efficiency is better and the company is promoting the brand everywhere. The company's revenue may grow 20 per cent, EBITDA 24 per cent, and PAT 25 per cent during FY24-26E, according to the brokerage.

Bikaji is available in 25 states and 4 union territories of the country. Apart from this, the company is also present in 22 countries, which include North America, Europe, the Middle East, Africa and Asia Pacific. The company has 11 manufacturing facilities. Of these, four are in Bikaner (Rajasthan). One of them is Hanuman Agrofood, which is its 100 per cent owned subsidiary.

Bikaji Foods Q4FY24 earnings

The company posted a massive 200 per cent jump in net profit at Rs 116.28 crore in the quarter ended March 31, compared to Rs 38.67 crore in the year-ago period, according to a stock exchange filing. 

Sequentially, the profit also recorded a 153 per cent jump compared to Rs 45.99 crore in the December quarter.

Bikaji Foods' revenue from operations also increased by 12.8 per cent to Rs 520.82 crore in the March quarter, from Rs 461.69 crore in the same period last year.

Bikaji Foods share price history

The stock has given good returns in the last one year. The stock gained almost 75 per cent in a year. The stock has shown a rise of 35 per cent in the last six months. The return in three months was 47 per cent. The stock has given returns of about 40 per cent in the last month. The 52-week high of the stock on BSE is 738.5 and the low is 403.5. The market cap of the company is more than Rs 18,156.46 crore.

The views/suggestions/advices expressed here in this article are solely by brokerage firm. Zee Business suggests its readers consult their investment advisers before making any financial decision.