Mrs. Bectors Food Q4 Review - Good (Can Be Great); Trajectory Below Potential: ICICI Securities
A layer of chocolate is applied to biscuits on the production line. (Photographer: Jason Alden/Bloomberg).

Mrs. Bectors Food Q4 Review - Good (Can Be Great); Trajectory Below Potential: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Mrs. Bectors Food Specialities Ltd.'s topline print (Q4: up 15% and FY21: up 16%) was good in the context of:

  1. weak institutional business and
  2. challenges in ramping-up distribution given on-ground issues.

Raw material inflation impacted gross margins but price hikes and a series of measures have been taken, management appears confident of ~15% Ebitda margins by Q2 FY22, in our view.

While overall growth guidance of ~15% and ~68% for domestic biscuits for FY22E was a tad disappointing, measures are being taken to improve the medium-term trajectory.

We believe the expansion of domestic biscuits and branded breads business into new regions driven by sales initiatives will be a key driver for growth.

Click on the attachment to read the full report:

ICICI Securities Mrs. Bectors Food Q4FY21 Results Update.pdf

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