Bikaji Foods Shares Soar 8% To Fresh High After Robust Q1 Results; Check Target Price

Bikaji Foods shares soared over 8 per cent on August 2 to scale a fresh peak of Rs 777 apiece on the National Stock Exchange (NSE). The stock has gained investors’ interest as the snacks manufacturer recently reported strong earnings for Apr-June quarter.

The company reported a 40.2 per cent increase in its consolidated net profit to Rs 58.06 crore in the fiscal first quarter ended in June 2024. Its revenue from operation rose 15.24 per cent YoY to Rs 555.12 crore in the quarter under review.

According to Nuvama Institutional Equities, the festive and wedding season from Q2FY25 shall propel growth across markets, especially in sweets. Q3FY25 onwards, value growth shall outstrip volume growth, the brokerage said.

Bikaji management anticipates volume growth to be in the range of 13–15 per cent in the medium term.

“We shall monitor FSSAI developments related to packaging regulations and its impact on consumer sentiment,” said Nuvama as it maintained a ‘buy’ rating on Bikaji with an unchanged target price of Rs 885.

Bikaji Foods’ reported volume growth of 16.2 per cent YoY, led by double-digit growth across categories. Its EBITDA for the quarter improved by 240 bps on account of operational efficiency and cost management, Bikaji noted.

According to JM Financial, Bikaji’s execution in the high-growth packaged snacks industry remains ahead of its listed peers, hence it believes premium valuations will sustain. The brokerage retained a ‘buy’ call on the snack maker’s stock with a target price of Rs 780.