Synopsis: Motilal Oswal sees Bikaji Foods International as a strong buy, with distribution expansion, multi-channel growth, and robust margins driving potential upside of 46 percent from current levels.
The article outlines Bikaji Foods International’s strong growth trajectory, highlighting robust distribution-led expansion, rising consumer preference for branded snacks, and increased traction in e-commerce and modern trade channels. Motilal Oswal’s ‘Buy’ rating, supported by healthy revenue, sharp EBITDA growth, and strong long-term financial projections, underscores the stock’s potential upside and investor appeal.
With a market capitalization of Rs 15,085 crore, Bikaji Foods International Ltd’s share closed at Rs 602 per share, down by 2.79 percent from its previous day’s close price. The share of this company has given a return of 89.32 percent over he last five years
Brokerage’s View
Motilal Oswal retains a ‘Buy’ rating on Bikaji Foods International Ltd, setting a target price of Rs 900. With the current market price at Rs 614, the stock offers an estimated upside of approximately 47.51 percent, reflecting strong growth and robust earnings potential.
Rationale
- Distribution-Led Growth: Bikaji’s expansion of its distribution network, complemented by strategic capacity additions, is expected to drive significant volume growth. This approach will enable deeper penetration into new regional markets with localised product offerings, strengthening the company’s market presence and supporting sustainable long-term growth across diverse geographies.
- Shift Toward Branded Snacks: The company is benefiting from a structural shift in consumer preferences toward branded packaged snacks. Rising demand for quality, convenient, and trusted products is fueling long-term consumption growth, positioning Bikaji to capture a higher market share while reinforcing brand loyalty and premiumization across its portfolio.
- Strong Traction in New Channels: E-commerce and modern trade channels, including supermarkets, are contributing increasingly to sales, enhancing product visibility and consumer reach. This multi-channel expansion supports faster revenue growth, while Motilal Oswal forecasts robust financial performance, with revenue, EBITDA, and PAT expected to grow strongly between FY25 and FY28.
Business Performance
Strong Revenue and Volume Growth: The company demonstrated healthy sales momentum in Q3, with volume rising 8.4 percent and value increasing 11.1 percent YoY. Steady consumer demand, effective distribution strategies, and improved market penetration contributed to this growth, reinforcing confidence in the company’s ability to sustain top-line expansion in the coming quarters.
Sharp Profitability Improvement : EBITDA jumped 77.1 percent to Rs 984 million in Q3, boosting 9M FY26 EBITDA to Rs 3,228 million. Gross margins expanded to 34.7 percent, up 586 bps YoY and 300 bps YTD, reflecting operational efficiencies, cost management, and favorable product-mix shifts, underpinning strong overall financial performance and margin resilience.
About the Company
Bikaji Foods International Limited is one of India’s largest fast-moving consumer goods (“FMCG”) brands. The company’s product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs (assortment), frozen food, mathri range, and cookies.
Financial Highlights: The revenue from operations grew by 11 percent to Rs 790 crore in Q3 FY26 from Rs 715 crore in Q3 FY25, and EBIDT grew by 77 percent to Rs 98.4 crore in Q3 FY26 from Rs 55.5 crore in Q3 FY25. Accompanied by a net profit growth of 118 percent to Rs 62.2 crore in Q3 FY26 from Rs 27.8 crore in Q3 FY25, resulting in an EPS growth of 118 percent to Rs 2.48 per share in Q3 FY26.
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