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The topline of the Issuer is showing an increasing trend and profitability margins have remained between 7%-11%.
Bikaji posted total revenues of Rs 423.82 crore in Q1FY23 and PAT of Rs 15.70 crore for the same period. For FY22, income increased by 22.60% to Rs 1621.45 crore from Rs 1322.21 crore in FY21. However, PAT has reduced by 15% to Rs 76.03 crore from Rs 90.34 crore in FY21 because of an increase in the prices of raw ingredients and a rise in finance costs due to higher interest costs on borrowings and lease liabilities.
Return on net worth has been 1.94% (Q1FY23), 9.53% (FY22), 14.93% (FY21), and 10.65% (FY20) respectively. Debt is 0.21x of equity as of 30th June 2022 which is on the lower side.
Particulars | Q1FY2023 | Q1FY2022 | FY2022 | FY2021 | FY2020 |
Total Revenue | 423.82 | 337.08 | 1621.45 | 1322.21 | 1082.9 |
Revenue from Operations | 419.16 | 334.05 | 1610.96 | 1310.75 | 1074.6 |
PAT | 15.7 | 12.41 | 76.03 | 90.34 | 56.37 |
EBITDA | 30.79 | 25.99 | 139.54 | 144.77 | 94.6 |
Total Assets | 1146.28 | 871.96 | 1102.13 | 817.15 | 676.64 |
Net cash from operating activities | 37.51 | 25.92 | 57.48 | 117.19 | 60.67 |
EBITDA Margin | 7.35% | 7.78% | 8.66% | 11.04% | 8.80% |
Net Margin | 3.70% | 3.68% | 5.75% | 8.34% | 8.33% |
The IPO is priced at 115.38x with annualized EPS of 2.60 for Q1FY23 calculated at the upper price band of Rs 300. P/E is 95.24x when calculated with EPS of 3.15 for FY22. Peer average P/E is 204.42 as per RHP which indicates that the IPO is fairly priced. The peers of the Issuer are Britannia, Prataap snacks, DFM Foods and Nestle, peer data can be seen below:
Parameters | Prataap Snacks | DFM Foods | Nestle India | Britannia Ind | Bikaji |
Face Value/share | 5 | 2 | 10 | 1 | 1 |
Total Income for FY22 (Cr) | 1396.62 | 554.45 | 14709.4 | 14136.3 | 1611 |
EPS | 1.24 | -4.93 | 222.46 | 63.31 | 3.15 |
NAV Per Share | 266.17 | 30.38 | 216.2 | 105.37 | 32.83 |
Return on net worth | 0.47% | -16.21% | 102.90% | 60.08% | 9.51% |
P/E | 748.91 | -77.84 | 86.85 | 59.75 | NA |
CMP (31st Oct 2022) | 926 | 381.85 | 20288.4 | 3790.35 | NA |
Bikaji IPO opens on 3rd Nov- 7th Nov 2022 with a price band of 285-300 per share. The retail quota is 35% and investors can apply with a minimum bid of 50 shares (Rs 15,000). The maximum lot size is 650 shares (Rs 1,95,000). The issue is an offer for sale by the promoter group, investor shareholders; India 2020 Maharaja Ltd., Intensive soft share, IIFL special opportunities Fund, and Avendus Future Leaders Fund. The issue is expected to list on 16th Nov 2022.
The organized snack segment has been strengthening its position in the market over the last few years, with new product launches and product innovations. The organized snacks market was valued at Rs196 billion in the year 2015 and is Rs 423 billion in 2022.
Western snacks still dominate the organized market with 57.2% of the market share in the Indian snacks segment. Ethnic namkeen and snacks contribute 26.9% followed by ethnic bhujia which is 15.9% in the overall snacks market in the year 2022.
Bikaji has a pan-India presence and also exports to 21 international countries in North America, Europe, the Middle East, Africa, and APAC. It has a strong topline growth and in the future, the sector has strong growth momentum as demand for this consumer-oriented packaged food category is on the rise. Hence considering these factors one shall subscribe to the IPO.
Review By CA Priyanka Choudhary on 27th Oct 2022
About CA Priyanka Choudhary
Priyanka Choudhary Jain is a Chartered Accountant and an experienced credit analyst. She has worked with CRISIL as Senior Credit Analyst on ratings assignments including business and financial analysis in Corporates as well as the Public Finance Sector.
Email: [email protected]
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.