FMCG Bikaji Foods Gives Acquisition Update, Nuvama Recommends Buy Call

Bikaji Foods International today considered and approved acquisition of 55% of total issued and paid-up equity share capital of Ariba Foods Private Limited. Bikaji Foods International Ltd shares today ended in red at Rs 853.90 per share with decline of 0.18%. Bikaji Foods International shares offered stunning returns of 20% in last 1-month and soared 56% so far this year. The company's market capitalisation stood at Rs 21,380.13 crore. FII/FPI have decreased holdings from 7.66% to 7.51% in June 2024 quarter. Number of FII/FPI investors increased from 104 to 107 in June 2024 quarter. Tata aia life insurance co ltd has 1.66% stake in Bikaji Foods with 4,147,212 shares of the company. Check more details pertaining to Bikaji Foods International:

Bikaji Foods International Acquires Arabia Foods Private Limited: As per the company's BSE filing dated August 23, 2024, "Board of Directors of the Company at their meeting held on Friday, August 23, 2024, have considered and approved to make a strategic investment of Rs 60,49,38,075 (Rupees Sixty Crore Forty Nine Lakh Thirty Eight Thousand and Seventy Five Only) in Ariba Foods Private Limited ("Ariba Foods") for acquisition of 55% of total issued and paid-up equity share capital. Subsequent to the acquisition, Ariba Foods will become a Subsidiary of the Company."

Further, the Company has entered into a Share Subscription Agreement with Ariba Foods to record the terms of the Strategic Investment, including the terms on which the Company shall acquire equity shares equivalent to 55% of the total issued and paid-up equity capital of Ariba Foods, added the exchange filing.

Bikaji Foods International Shares Performance: Bikaji Foods International shares gained 60% in last 3-months, registered surge of over 62% in last 6-months, and rose 77% in last 1-year. The 52-week high price of Bikaji Foods International Ltd share on BSE is Rs 895.95 per share (as on 12/08/2024) and 52-week low price is Rs 450.45 per share (as on 26/10/2023), respectively.

Bikaji Foods International Q1: The leading FMCG company on July 24, 2024 declared a surge of 40.2% in its consolidated net profit to Rs 58.06 crore for the quarter ended June 30, 2024 as against the net profit of Rs 41.41 crore in the corresponding quarter of last year. The company's revenue from operations for June 2024 stood at Rs 555.12 crore, up 15.24% as against Rs 481.68 crore announced in the similar quarter of last year. Volume growth of Bikaji Foods International declared at 16.2% YoY helped by the double-digit growth across categories. Its total expense for the quarter under review surged 16.08% to Rs 501.32 crore while total income rallied 18.8% to Rs 579.41 crore.

Should You Buy Bikaji Foods International Shares? Domestic brokerage Nuvama Institutional Equities recommended buy call to Bikaji Foods share with a price target of Rs 885. The analyst said, "We believe that the company is in a sweet spot to grow given its wide menu."

"Bikaji's insatiable scope of savoury snacks, brand equity, favourable trends and expansion make it covetable," added Nuvama.

Disclaimer:

The stock has been picked from the brokerage report of Nuvama. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.