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:
- weak institutional business and
- 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:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.