The Shares of this third-largest ethnic snacks company in India rose over 2 percent after making a strategic investment of Rs. 131.01 crores to acquire a 53.02 percent stake in Hazelnut Factory Food Products Pvt Ltd.
Share price variations:
With a market capitalization of Rs. 22,605.76 crores, Bikaji Foods International Ltd. rose to an intraday high of Rs. 929.10 representing a 2 percent increase from its previous closing price of Rs. 910.35 per share.
Reason for the Rise:
According to exchange filings, Bikaji Foods International Ltd. has acquired a 53.02 percent stake for Rs. 131.01 Crores through its subsidiary in Hazelnut Factory Food Products Pvt Ltd, a company belonging to the Food and Beverage Industry which reported a turnover of Rs. 44.85 crores in FY24 and will become an associate company of Bikaji Foods International Ltd post-acquisition.
The target company is engaged in the business of manufacturing, distribution, and sale of a diverse range of food products and beverage items through its cafés located in the State of Uttar Pradesh and Delhi, as well as through its website and various food aggregator platforms.
Recent Acquisitions:
Recently, the company acquired a 55 percent stake for Rs. 60.49 crores in Ariba Foods Private Limited as a plan to enhance BFIL’s backward integration and secure control over the supply of Frozen Food.
In July Vindhyawasini Sales Private Limited a subsidiary of Bikaji Foods International Limited was amalgamated with the parent company.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 40 percent to Rs. 58.06 crores compared to Rs. 41.41 crores in Q1FY24, while revenue from operations also marked an increase of 15.24 percent to Rs. 555.13 crores from Rs. 481.69 crores in comparison to the same period.
The company has consistently improved its ROE and ROCE over the past three years, rising from 10.66 percent and 13.38 percent in FY22 to 24.24 percent and 28.54 percent in FY24, respectively. The company’s shares have delivered a 73 percent return over the past six months.
As of Q1 FY25, the company generated 72.75 percent of its revenue from ethnic snacks, 7.6 percent from packaged sweets, 9.47 percent from western snacks, and 5.85 percent from papad.
About the company:
Bikaji Foods International Ltd, the third largest ethnic snacks company in India with an international footprint, selling Indian snacks and sweets, and the second fastest growing company in the Indian organized snacks market. The company has a manufacturing capacity of 2,99,820 metric tonnes as of June 2024 and has a pan-Indian presence.
Written By Joseph Pv
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