Trending Stock of the Day: Bikaji Foods Zooms over 7%

The NSE benchmark Nifty50 index has trimmed its early gains and is seen trading flat, up by 33 points at 22,522 level. Selling pressure in Bharti Airtel, Kotak Bank and SBI weighed down the index.

The Bank Nifty has slipped 500 points from its day’s high and is seen trading down by 0.10% at the 48,635 level. Mixed performance was seen in the broader market indices with Nifty Midcap 100 trading lower by 0.16%, while the Nifty Smallcap 100 was trading up by 0.10%.

Bikaji Foods International: Standout Performer

One stock that has captured the attention of market participants on Friday is Bikaji Foods International. The stock gained over 7% on Friday and was seen trading at a three-month high backed by strong volume action. Bikaji has emerged as a strong savory snacks & sweets brand. The company is well placed to address demand on the back of quality products and its brand popularity.

Financial Performance and Capacity

In Q4FY24, Bikaji reported a growth of 33% YoY in its revenue from operations, standing at Rs 614.4 crore. The company reported 14.3% underlying volume growth. EBITDA surged 161% YoY to Rs 161.6 crore. EBITDA is a financial metric used to evaluate a company’s operating performance without factoring in certain non-operating expenses. Meanwhile, the net profit witnessed a three-fold rise to Rs 115.6 crore in Q4FY24. As of March 31, 2024, company has installed capacity of 2,99,820 metric tonnes and overall total reach of 10.58 lakhs outlets.

Future Plans

The company is targeting a volume growth of 13-15% for the next two years and plans to hike prices by 2-4% this year. Furthermore, it aims to sustain gross margins around 32.5-33% and is focused on utilizing existing capacity and looking for potential acquisition opportunities.

Stock Performance

Shares of Bikaji are up by 10% in the month of May, while on YTD basis, the stock is up by 7.50%.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.