One of the small-cap FMCG stocks specializing in a wide range of snacks and traditional Indian foods has jumped 2.29 percent after acquiring a 100% stake in its subsidiary through cash consideration of Rs. 1,00,000.
Stock Price Movement
In Monday’s trading session, Bikaji Foods International Limited’s share jumped to an intraday high of 2.29 percent from the previous close of Rs. 764.60. The stock opened at Rs. 774.74 and is currently trading at Rs. 774.95, with a high of Rs. 782.10 and a low of Rs. 767.55. The market capitalization now stands at approximately Rs. 19,403.37 crore.
What Happened
Bikaji Foods International Limited (BFIL) has acquired 100% shareholding in Bikaji Bakes Private Limited (BBPL), a wholly-owned subsidiary, on December 28, 2024.
BBPL will focus on manufacturing and distributing a range of frozen bakery products, including bread, cakes, croissants, and gluten-free items. The acquisition was made through a cash consideration of Rs. 1,00,000.
Capacity and Expansion
Bikaji Foods International Limited’s current capacity is expected to meet demand for the next 2-3 years, with minor capital expenditure planned for expanding the sweets category. The company has increased direct coverage from 208,000 to 278,000 outlets and aims to reach 350,000 outlets by FY26.
Product Segment Insights
Bikaji Foods International Limited’s ethnic snacks contributed 65.5% to revenue, a slight decrease from 68.9% last year, due to increased sweets sales during Diwali. Papad sales rose by 26.2% in Q2, showing strong demand. Family packs made up 62.3% of Q2 sales, up from 59.1% last year.
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Strategic Initiatives
Bikaji Foods International Limited has acquired The Hazelnut Factory to expand into the artisanal sweets and bakery segments. Additionally, the company is strengthening its backend operations for frozen foods to boost export capabilities, especially after the Diwali season.
Recent quarter results and ratios
Bikaji Foods International Limited’s revenue has increased from Rs. 55 crore in H1 FY24 to Rs. 73 crore in H1 FY25, which has grown by 32.73 percent. The net profit of Bikaji Foods International Limited has also grown by 75 percent, from Rs. 4 crore in H1 FY24 to Rs. 7 crore in H1 FY25.
Bikaji Foods International Limited’s revenue and net profit have grown at a CAGR of 28.56 percent and 112.13 percent, respectively, over the last two years.
In terms of return ratios, the company’s ROCE and ROE should be 15.1 percent and 11.5 percent, respectively. The debt-to-equity ratio of the company is to be 0.69x. Bikaji Foods International Limited’s EPS is to be Rs. 8.34.
Company Overview:
Bikaji Foods International Limited was founded in 1987 by Shri Shivratan Agarwal and is one of India’s largest FMCG brands. Headquartered in Bikaner, Rajasthan, the company specializes in a wide range of snacks and traditional Indian foods.
The company product categories include bhujia, namkeen, packaged sweets, papad, western snacks, as well as gift packs, frozen food, mathri, and cookies.
Written By – Nikhil Naik
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