The recently listed company Bikaji Foods International Ltd is making news for good reasons. Stock was 4% up on the Wednesday after strong second quarter performance and acquisition of Hanuman Agrofoods. The ethnic snacks player Bikaji Foods got listed with 8% on 322.80 in the month of November. Since then it has given more than 30% returns to shareholders who continued to hold the shares from IPOs. Bikaji Foods made high of 415.35 on 7th December 2022 after the stellar Q2 performance. Market cap of Bikaji reached Rs 10290 Crores after this price movement.
Net Profit grew by 43.2%, Revenue grew by 32%, EBITDA margin came 11.4% thanks to softening of raw materials prices. Many categories showed double digit growth. Valuations wise Bikaji Foods International Ltd shares are now very expensive as compared to other FMCG players. In the separate filing with the exchanges, company announced that it will exercise the ‘right of conversion’ of preferential shares of Hanuman Agrofoods into equity shares. Under this 28,13,050 compulsory convertible cumulative preference shares will be converted into equity shares making Hanuman Agrofood Pvt Ltd. a Subsidiary of Bikaji International Foods Ltd.
Bikaji Foods shares have given tremendous returns to investors and it is very expensive share now. New entry is not recommended at these levels. Due to upcoming Christmas and New year season we may see good demand in Snacks business. Company will continue to perform good in the coming quarters. We can wait for the sizeable correction in the stock to make fresh entry. Those who have shares of Bikaji can book partial profit and hold the remaining shares.
Disclaimer: Stocksbaazigar Mr. Deepak Doddamani is not a SEBI registered advisor. He is NSE’s Certified Investment Analysis Professional, NSE’s Certified Marketing Professional Level – 4, AMFI registered Mutal Funds distributor and Authorized Person with IIFL Securities Ltd. This post is for educational purpose and Stocksbaazigar is not responsible for any Profit/Loss of reader. Please consult your financial advisor before taking any investment decision.