IIFL Securities initiates coverage on Bikaji Foods with 'add'

Bikaji Foods International

24/03/2023 07:51

** IIFL Securities begins coverage of Bikaji Foods International
 BIKA.NS  with 'add' rating and PT of 385 rupees
    ** Expects core profit margins to expand to about 12%-levels
with easing of commodity prices by FY2025
    ** Adds that co would be able to continue double-digit
growth across all segments with increase in direct coverage
    ** Input cost deflation, operating leverage and PLI benefits
to aid margin expansion - IIFL Securities
    ** Says BIKA has execution skills to exploit growth
opportunity in Indian savoury snacks and sweets markets
    ** Says co's product mix and manufacturing facilities close
to target markets keep its logistics costs among lowest in the
industry
    ** Stock is up 13.53% as of last close, since debut on Nov.
16, 2022

 (Reporting by Varun Vyas in Bengaluru)
 ((varunvyas.hebbalalu@thomsonreuters.com;))