Bikaji Foods International share price hits all-time high, up over 15% in three sessions. What is driving the rally?

Today marks the third day in a row that the Bikaji Foods International share pricehas surged, reaching an all-time high. Bikaji Foods stockrose by more than 15% during the last three sessions. On August 6, Bikaji Foods International received a buy recommendation from IIFL Securities in a note. The target price of ₹770 represents a 3.0% increase from the current market price of ₹747.85. But as of right now, the stock has above the thresholds. The brokerage company considers the company to be an appealing investment prospect due to its wide product line, strong brand presence, and development aspirations.

Bikijia Foods is active in 25 Indian states and four union territories as of March 31, 2024. In addition, Bikaji Foods sells its goods to 25 nations in the Asia-Pacific area, Europe, the Middle East, Africa, and North America.

With six primary product categories—bhujia, namkeen, packaged sweets, papad, western snacks, and miscellaneous things including gift packs, frozen meals, mathri, and cookies—Bikijia Foods provides a wide selection of products. This extensive range has enabled the business to serve a wide range of domestic and foreign clients.

Stratzy's MOST Framework has assigned Bikaji Foods International Ltd. a grade of 'AA-'. The company's good grade is a result of its stable financial performance and capable management team. Bikaji Foods is optimistic about the future because of the increasing demand for its goods both domestically and internationally. The company's cash situation is excellent and its debt levels are manageable. In addition, Bikaji Foods is dedicated to quality and safety, emphasizing upholding strict guidelines for food production.

Bikaji Foods International share price

Shares of Bikaji Foods have increased by more than 44% since the year's beginning, much surpassing the 11.3% increase in the benchmark Nifty 50 index in the same time frame.

Bikaji Foods International share price today has opened at ₹787.00 apiece on the BSE, the stock touched an intraday high of ₹818.60 and a intraday low of ₹777.00.

“We’re observing a volume-driven upward movement in this sector, and after a period of consolidation, a bullish breakout occurred this week. This stock has outperformed the broader market and is expected to continue performing well in the near term. An upward move towards ₹900 is anticipated, with any dip towards ₹750 likely to attract buyers,” said Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One.

Bikaji Foods International Financials

Bikaji Foods revealed outstanding financial outcomes during the June quarter. Compared to the same time previous year, the company's consolidated net profit increased by 40.6% to ₹58.06 crore. The revenue rise of 15.24%, to ₹555.12 crore, was the main driver of this growth. In addition, Bikaji Foods had an 18.8% increase in overall revenue to ₹579.41 crore, with a 16.2% year-over-year improvement in volume across all categories. These numbers demonstrate the company's strong performance and the demand for its goods on the market.

The Company in Q1FY25 Conference call said “The management is aiming for 13-15 per cent volume growth for FY25, and expects product prices to increase by about 2-3 per cent. Return of rural demand is likely to aid overall demand recovery, with concentration of Western snacks being high. Bikaji has already achieved expansion to 21k outlets, of its FY25 distribution expansion target of 50k outlets”.

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