FMCG Stock Soars 40 percent in a Month: Brokerage’s Bullish Call, Target and Stop Loss

Stock to purchase: For the upcoming year, brokerage AnandRathi has set a target price for the company of Rs 900 per share. The share price closed at Rs 725 apiece on June 14, 2024. In this manner, the stock can yield a robust 25 percent return from its current price.

FMCG Stock Soars 40 percent in a Month

FMCG Stock Soars 40 percent in a Month: Brokerage's Bullish Call, Target and Stop Loss

Stock to buy: Bikaji Foods International Ltd., a packaged food firm, has been covered by brokerage AnandRathi Investment Services, which has issued a buy recommendation. According to the brokerage, the company’s growth is still getting better. In its category, it has also grown to be a powerful brand.

Bikaji Foods: The desired amount
For the upcoming year, brokerage AnandRathi has set a target price for the company of Rs 900 per share. The share price closed at Rs 725 apiece on June 14, 2024. In this manner, the stock can yield a robust 25 percent return from its current price.

Why brokerages are optimistic about Bikaji Foods

The brokerage claims that the business is heavily investing on customer presence and brand memory. Amitabh Bachchan is the brand ambassador for the company. The company’s western snack segment is being promoted through the Bikaji Cafe and Bikaji Funkin brands. The business offers a mobile application and an online shopping platform.

The revenue and EBITDA of Bikaji Foods increased at a compound annual growth rate (CAGR) of 21% to 42% from the 2019 fiscal year to 2024. The company has a robust product line. Better operational efficiency and widespread brand promotion are being implemented by the company. The brokerage estimates that during FY24–26E, the company’s revenue might increase by 20%, EBITDA by 25%, and PAT by 25%.

There are 25 states and 4 union territories in the nation that offer Bikaji. In addition, the business is active in 22 other nations, including those in Asia Pacific, North America, Europe, the Middle East, and Africa. The business operates eleven production sites. Four of them are located in Bikaner, Rajasthan. Hanuman Agrofood is one of them; it is its 100 subsidiary owned by %.

Results for Bikaji Foods’ Q4FY24, FMCG Stock Soars 40 percent in a Month

According to a stock exchange filing, the company reported a huge 200 percent increase in net profit, coming in at Rs 116.28 crore for the quarter that ended on March 31 as opposed to Rs 38.67 crore for the same period last year.

Comparing the profit sequentially, there was a 153% increase from Rs 45.99 crore in the December quarter.

In the March quarter, Bikaji Foods’ operating revenue rose by 12.8% to Rs 520.82 crore from Rs 461.69 crore during the same time the previous year.

History of Bikaji Foods’ share price
Over the past year, the stock has produced strong returns. The stock increased by over 75% in a single year. The supply has increased. of 35% during the previous half-year. After three months, the return was 47%. In the past month, the stock has returned almost 40% of its initial investment. The stock’s 52-week high on the BSE is 738.5, while its low is 403.5. The company has a market capitalization of about Rs 18,156.46 crore.

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