Shares of Mrs Bectors Food Specialities (MBFSL) hit a new high of Rs 772 as they rallied 8 per cent on the BSE in Monday’s intra-day trade on the back of heavy volumes. In past two trading sessions, the stock of packaged foods company has surged 17 per cent after the company reported a record turnover and profit for the quarter and fiscal year ended March 2023.
At 10:35 AM; the stock quoted 4 per cent higher at Rs 745.85, as compared to 0.73 per cent rise in the S&P BSE Sensex. The average trading volumes at the counter more-than-doubled today. A combined 920,000 equity shares changed hands on the NSE and BSE.
MBFSL is one of the leading companies in the premium and mid-premium biscuits segment in North India under the brand ‘Cremica’ and a leading premium bakery player in India under the brand ‘English Oven’.
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Thus far in the calendar year 2023, the stock has zoomed 84 per cent, as compared to nearly 3 per cent rise in the S&P BSE Sensex. The company made its stock market debut on December 24, 2020. Currently, the market price of the company has more-than-doubled or soared 168 per cent against its issue price of Rs 288 per share.
For Q4FY23, MBFSL reported 171 per cent year-on-year (YoY) jump in profit after tax at Rs 27.7 crore, against Rs 10.20 crore in a year ago quarter (Q4FY22). Revenues grew 37.2 per cent YoY at Rs 346.1 crore.
Reported earnings before interest, taxes, depreciation, and amortization (ebitda) increased 89.5 per cent to Rs 48.2 crore from Rs 25.5 crore in Q4FY22. Ebitda margin in Q4FY23 improved 380 bps to 13.9 per cent from 10.1 per cent, YoY.
The management said the company robust performance, delivered by product portfolio optimization & premiumization efforts coupled with strengthening brand equity, increase in distribution touchpoints, enhanced direct reach and responsible pricing actions aided in offsetting the ongoing pressure from consistent inflation during the year.
The packaged foods industry is expected to grow at a healthy pace in the future owing to a large population base, rising spending ability, increased consumer consciousness of hygiene and cleanliness, and shift in preference towards branded products. MBFSL is expected to benefit from this growth as it operates in the premium biscuits and breads segment.
MBFSL earns 76 per cent of its biscuit revenue from North and Northwest India and is among the top three biscuit manufacturers in many states (Punjab, Haryana, Himachal Pradesh, Jammu & Kashmir, Uttar Pradesh, Uttarakhand and Delhi National Capital Region). The company established relationships with large quick service restaurant (QSR) customers for its institutional bakery items (buns and breads).