Mrs. How did Bectors Food’s stock price soar 118% in one year?

Mrs. Beckors Food Specialties Ltd. Mrs. Rajni Bector is Mrs. As the founder of Bectors Food Specialties Ltd, she tells the story of her incredible vision and business success. Mrs. Bector started out in Ludhiana, Punjab, in the 1970s, bringing her home-made cakes, cookies, ice cream, puddings and breads to gatherings in her neighborhood.

Mrs. Bector’s success story is full of notable achievements. Her first significant step was in 1985, when she set up a bread division in Punjab where she produced 5,000 loaves of bread a day, which quickly grew to 50,000. As the business grew, new manufacturing facilities opened across India, and by 1996, the company was officially supplying burger buns to McDonald’s.

Mrs. Beckors Food Specialties Ltd. It was listed in December 2020 and raised Rs 541 crore through its IPO, which was oversubscribed 198 times. These achievements have led to the company’s market valuation more than doubling, reaching Rs 2500 crore by November 2021. The stock has nearly doubled in value in the last year, delivering a return of 118.06%.

The business also performed well financially in the December 2024 quarter. Biscuit segment revenue for both domestic and export biscuits stood at Rs 26.8 billion in the third quarter of FY24, up 22 per cent compared to Rs 219 million in the third quarter of FY23. The biscuit segment expanded 71% from the third quarter of 2022.

Including retail bakeries and institutional segments, bakery segment sales in Q3 2024 was Rs. ₹146 crores, up from ₹127 crores in Q3 2023. This is a 15% increase compared to the third quarter of 2023. The bakery segment has grown 58% since the third quarter of 2022.

Profit after tax in the third quarter of FY24 also increased by 25% from Rs 27.8 billion in the third quarter of FY23 to Rs 34.6 billion. So what is the company’s position with regard to the biscuit and bakery industry in India? Will it still provide a good investment opportunity in the future? So let’s take a closer look at the article to find out.

Mrs. Corporate Overview of Beckors Food Specialties Ltd

In North India, Mrs. Bectors Food Specialties Ltd (MBFSL) stands out in the premium and mid-range biscuits and premium baking markets. Main brand ‘Mrs. ‘Bector’s Cremica’ produces and sells a wide range of biscuits including cookies, creams, crackers, digestives and glucose.

Under the ‘English Oven’ brand, we also produce and sell bakery products in both savory and sweet categories such as bread, buns, pizza bases, and cakes. MBFSL produces all of its own products at six manufacturing locations. We export to 69 countries across 6 continents and provide our products to reputed institutional clients located across India besides retail clients in 26 states of India.

Additionally, the company stands out in the premium bakery market in India and serves as a preferred supplier to many popular multiplex, cloud kitchen and QSR franchises in the country.

business division Mrs. Beckors Food Specialties Ltd.

The company has two main business segments: One is manufacturing biscuits under the brand name Cremica and the other is manufacturing branded bread and bakery products under the brand name English Oven.

biscuit segments

MBFSL is Mrs. Bector’s Cremica is a major player in the premium and mid-range biscuit market in North India offering products under its flagship brand. It has a prominent presence in Punjab, Himachal Pradesh, Ladakh and Jammu & Kashmir.

The biscuit category product portfolio, which includes a variety of cookies, creams, crackers and digestives, has approximately 400 SKUs. To further highlight our excellent product quality, we have also signed a contract with Mondelez India (Cadbury) to produce ‘Oreo’ biscuits and ‘Choco Bakes’ cookies.

In fiscal 2023, the business segment recorded revenue growth of 36% to Rs 870 million. During the same fiscal year, this segment contributed approximately 59.25% to the total revenue. With over 1,180 distributors and 5,80,000 retail outlets, the company has a 5.4% premium and mid-premium market share in North India.

bakery sector

MBFSL distributes and sells high-quality bakery products in savory and sweet categories, including breads, buns, pizza bases and cakes, to retail customers under the “English Oven” brand.

Capable of handling fresh, chilled and frozen foods, the bakery is one of the few bakeries in India that can effectively distribute a wide range of baked goods covering around 100 SKUs in the country.

In FY23, the business segment achieved 44% revenue growth to ₹487 crore. During the same fiscal year, this segment contributed approximately 35.75% to the overall revenue. With over 600 distributors and 35,000 retail outlets, the company has a 5% market share in the branded bread segment in India.

Mrs. Treasurer of Bectors Food Specialties Ltd

In fiscal year 2023, Mrs. Bectors Food Specialties saw significant growth in its sales, surging 37.8% to reach ₹1,362.14 crore compared to ₹988.17 crore in fiscal 2022. After analyzing four years from FY2020 to FY2023, the company recorded a solid Compound Annual Growth Rate (CAGR) of 21.36%.

At the same time, net profit also showed a notable increase, increasing by 57.6% from ₹57.14 crore in FY2022 to ₹90.07 crore in FY2023. Cumulative net profit over the four years from fiscal 2020 to fiscal 2023 recorded a CAGR of 20.53%.

In FY23, Mrs. Bectors Food Specialties maintained favorable financial metrics with a return on equity (ROE) of 17.78% and a return on equity (ROCE) of 20.53%.

Mrs. Future plans for Bectors Food Specialties Ltd

huge industrial tailwind

With an expected growth rate of 9%, India’s bread retail industry is expected to reach Rs 76 billion by FY25 from a valuation of Rs 50 billion in FY20. The key drivers of growth will be changes in consumer preferences and lifestyles, as well as increases in disposable income. Due to rising disposable income and changing dietary choices, the demand for bread is mainly concentrated in metropolitan areas, tier 1 and larger tier 2 cities.

Over the past decade, the Indian foodservice industry has experienced growth due to changes in consumer habits, including an increase in the trend of eating out, which historically has not been a part of Indian culture.

Food services revenue in India is expected to grow at a compound annual growth rate (CAGR) of 9% over the next five years to reach Rs 6,505 trillion by FY25, from approximately Rs 4,236 billion in FY20.

Expand distribution

As of March 2023, MBFSL had 2.7 million outlets in 331 districts, up from 2.16 million outlets in 269 districts. This means that the distribution area in the home biscuit market is expanding.

By March 2024, the company expects to have 320,000 stores, double the number it had in March 2022. Additionally, operations are expanding into the southern and western regions. To boost sales, MBFSL increased the number of street staff (salespeople who serve and monitor distributors) from 900 to 1,200 in March 2023.

The company has commissioned two biscuit lines in Rajpura this year. Two more lines are being added and are expected to be completed by H1 24-25.

On the bakery business, the company has commissioned its Bhiwadi plant this year and is also setting up a new bakery unit in Kolkata, which will be completed in FY24-25. The bakery plant at Khopoli is also being expanded and is expected to be commissioned in FY24-25.

The company has commissioned two biscuit lines in Rajpura this year. Two more lines are being added and are expected to be completed by H1 24-25.

On the bakery business, the company has commissioned its Bhiwadi plant this year and is also setting up a new bakery unit in Kolkata, which will be completed in FY24-25. The bakery plant at Khopoli is also being expanded and is expected to be commissioned in FY24-25.

conclusion

Mrs. Considering Bectors Food Specialties Ltd’s impressive performance and strategic expansion plans, the future looks promising for the company. With strong sales growth, an expanding distribution network and a strong foundation in both the biscuit and bakery segments, MBFSL is well positioned for continued success. As a reader, what is your insight into the company’s trajectory? Do you think MBFSL is a solid investment opportunity given its industry presence and growth prospects? Let us know in the comments below!

Written by Nalin Surya

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