Bikaji Foods shares price up 38 pc after IPO

The price of the scrip rose 4.99 per cent to hit a new high of Rs 415.30 on the BSE. The scrip is up 38 per cent over the IPO issue price of Rs 300. The stock made a market debut in November.

Bikaji Foods said in a filing to the BSE that its revenue for the quarter increased by 32 per cent to Rs 577 crore compared to Rs 437.68 crore in the same quarter last year. The PAR margin for the quarter came in at 7.1 per cent against 6.5 per cent in the year-ago quarter.

Bikaji said that the BSE filing helped to reduce materials costs, so the ebitda margin for the quarter stood at 11.1 per cent against 10.4 per cent.

Managing Director Deepak Agarwal said that his company saw a healthy and positive growth in revenue on a yearly basis.

Our top line has delivered 37.7 per cent growth as compared to previous quarter and the same is 31.8 per cent as compared to the same quarter last year. As compared to the previous year, we have seen a good double-digit growth in all categories. He said that we have continued to expand our distribution network and started the CSD channel in the current quarter.

Agarwal said that the company has seen a decrease in the prices of key raw materials, edible oil and packing materials, which have contributed to the profitability of the company.

The CMU's viz. is in the current quarter two. Agarwal said that Hamuman Agro Food Private Limited and Raadhey Namkeen Private Limited have started commercial production which will help us meet the demand for western snacks as well as Namkeens.

He said that his company would work closely on the RTM strategy to achieve a deeper distribution model and that his focus will be on strengthening the distribution network to achieve a deeper distribution model.