Mrs Bectors Food Specialities | Business Upturn

Mrs Bectors Food Specialities reports 86% growth for Q3

Ruchira Sonawat — Mon, 08 Feb 2021 08:54:20 +0000

Mrs Bectors Food Specialities has reported 86 per cent growth in its profit after tax at ₹21 crore for December quarter from ₹11 crore in Q3 FY20.

It posted 11 per cent growth in revenues at ₹226 crore in Q3 FY21 from ₹203 crore in the same period of previous fiscal. Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 40 per cent to ₹40 crore from 28 crore.

For the tenure ended December 2020, the net profit was up by 180 per cent to ₹60 crore from ₹21 crore in the corresponding period of previous fiscal. Revenues totalled ₹657 crore from ₹568 crore, up 16 per cent, with EBITDA rising by 66 per cent to ₹112 crore from ₹67 crore.

The company witnessed double-digit growth in its biscuits segment backed by strong demand in both domestic as well as exports market. The branded bread and bakery products also saw an increased level of demand with the change in dietary habits and lifestyle behaviours during COVID-19.

“The festivals helped to create a positive sentiment among consumers across India despite COVID-19 during the last quarter. The company witnessed a strong volume uptick for its products across all categories, especially in the premium category. There has been a significant increase in the price realisations too,” said Managing Director Anoop Bector.

Biscuits and bakery products maker Mrs Bectors Food Specialities had made a strong debut on the BSE and NSE as its shares had listed at a massive 74 per cent premium over its issue price in December 2020, after stellar subscription to its IPO in the same month.

Mrs Bectors Food Specialities Ltd is one of the leading companies in the premium and mid-premium biscuits segment in north India and a leading premium bakery player in India. The company is a leading biscuits exporter to 64 countries across six continents and is expanding through modern trade and e-commerce.

Mrs Bectors Food Specialities makes strong debut, lists at 74% premium over issue price

Divya Joyce — Thu, 24 Dec 2020 07:29:08 +0000

Biscuits and bakery products maker Mrs Bectors Food Specialities made a strong debut on the BSE and NSE as its shares listed at a massive 74 percent premium over its issue price on December 23, after stellar subscription to its IPO last week.

The share price opened at Rs 501 on the BSE, higher by Rs 213 compared to issue price of Rs 288, while on the National Stock Exchange, it listed at Rs 500, a 73.61 percent premium.

The BSE has fixed the upper price band for shares at Rs 601.20 and the lower price band at Rs 400.80 for the listing day. This is 20 percent higher and lower respectively compared to the opening price.

Shares hit the upper circuit of Rs 601.20 on the BSE and Rs 600 on the NSE in the initial trade.

The company which makes biscuits and sauces under the brand name “Mrs Bector’s Cremica” and bakery products under the brand name of “English Oven” raised Rs 540.54 crore through its IPO during December 15-17. the issue was subscribed a whopping 198.02 times, making it the most subscribed IPO in 2020, leaving behind Mazagon Dock Shipbuilders (157.41 times) and Burger King India (156.65 times).

The company has gained market share in the H1 FY21 and reported results better than its peers. Mrs Bectors has a widespread and established distribution network with presence across 26 states. It registered a revenue growth at a CAGR of 5 percent, but profit declined by 8 percent CAGR during FY18-FY20.

Mrs Bectors improved its financial performance in the first half of FY21 with a profit of Rs 39 crore on a revenue of Rs 431 crore.

It is one of the leading biscuits and bakery products manufacturers in North India with a market share of around 4.5 percent in the premium and mid-premium segments.

“The strong foothold in the global market and consistent focus on product development in premium and mid-premium segment, has helped the company achieve better price realization (from around Rs 18 to Rs 22 per pack) and operational efficiency resulting in sustainable margins,” said KR Choksey.

Currently, Mrs Bectors is operating at a capacity utilization of around 72 percent per annum. It plans to expand its production capacity to produce additional 14,400 tones of biscuits by FY22.

Mrs Bectors Food, which manufactures biscuits under the flagship brand ‘Mrs. Bector’s Cremica’ and bakery products under the brand ‘English Oven’, will utilize its fresh issue proceeds for financing the project cost towards the expansion of the Rajpura manufacturing facility by establishing a new production line for biscuits.

“With improving price realization and asset turnover, the additional capacity has the potential to grow the topline at a CAGR of around 15-18 percent in next 2-3 years,” said KR Choksey.

Mrs Bectors Food is the largest supplier of buns in India to reputed QSR chains such as Burger King India, Connaught Plaza Restaurants, Hardcastle Restaurants, and Yum! Restaurants (India).

Nifty, Sensex rebound & shares gain on news of Brexit deal

Divya Joyce — Thu, 24 Dec 2020 05:54:56 +0000

Indian shares developed on the back of gains in Reliance Industries and financial stocks on Thursday and boosted investor sentiment, as the news of Brexit trade deal closure circulated.

The NSE Nifty 50 index rose 0.64% to 13,688.60 by 0352 GMT and was set for its third straight day of gains, while the benchmark S&P BSE Sensex was up 0.63% at 46,742.16.

Britain and the European Union were on the cusp of striking a narrow trade deal on Thursday, media reports said, boosting Asian equities.

The telecom operator added 3.67 million new customers in October, the highest among other telecom operators in the country, data showed on Wednesday.

Bucking the trend, the Nifty IT index inched 0.3% lower after hitting record peaks in the previous two sessions.

Biscuit maker Mrs Bectors Food Specialities is slated to make its market debut later on Thursday.

Mrs Bectors Food IPO subscribed more than 11 times on day 2

Divya Joyce — Wed, 16 Dec 2020 14:13:50 +0000

The Rs 541-crore initial public offer (IPO) by Mrs Bectors attracted more than 11 times subscription on Day 2, on the back of robust demand from all categories of investors.

The issue received bids for 15,09,10,500 shares, which was 11.40 times the issue size of 1,32,36,211 shares, which was 11.40 times the issue size of 1,32,36,211 shares.

Mrs Bectors Food IPO comprises a fresh issue of ₹40.54 crore and an offer-for-sale of up to ₹500 crore. The price range for the IPO has been fixed at ₹286-288 per share.

On Monday, Mrs Bectors Food Specialities raised ₹162 crore from anchor investors. SBI Capital Markets, ICICI Securities, and IIFL Securities are the managers to the offer.

“At the upper end of the IPO price band, it is offered at 28.1x its TTM (trailing twelve months) earnings, demanding ₹16,918 million market cap, which we believe is quite reasonable. Further, its listed peers like DFM Foods and ADF Foods are currently trading at 50.5x and 24.9x respectively of its TTM earnings.

Mrs Bectors Food manufactures and markets a range of products such as biscuits, bread and buns. It markets a wide variety of biscuits and bread under the flagship brand ‘Mrs Bector’s Cremica’ and the ‘English Oven’, respectively. Many analysts have recommended “subscribe” to the IPO.

We further believe that there is a good possibility of listing gains given lower valuations as compared to other listed peers. Further considering attractive valuation and strong future growth prospects in packaged biscuits we recommend a “Subscribe” rating to this IPO for the long term,” domestic brokerage Anand Rathi said in a note.

Mrs Bectors Food Specialities IPO oversubscribed in few hours of day 1

Sarthak Yadav — Tue, 15 Dec 2020 17:38:00 +0000

After Burger King India, Mrs Bectors Food Specialities becomes another Initial Public Offer (IPO) this month to have received over subscription in a few hours of opening for public subscription.

The initial share sale of Mrs Bectors Food Specialities got oversubscribed within a few hours of opening for subscription on Tuesday also the first day and ended with 3.72 times subscription.

According to data available with the NSE, Mrs Bectors Food’s IPO received bids for 4,92,53,700 shares against 1,32,36,211 shares on offer.

The Qualified Institutional Buyers (QIBs) category was subscribed 2%, while that of non-institutional investors and retail investors got subscribed 1.37 times and 6.83 times, respectively.

The offer comprises a fresh issue of Rs 40.54 crore and an offer for sale of up to Rs 500 crore.

The price band for the share sale, which would close for subscription on Thursday, has been fixed at Rs 286-288 apiece.

On Monday, Mrs Bectors Food raised Rs 162 crore from anchor investors. SBI Capital Markets, ICICI Securities and IIFL Securities are the managers to the offer.

Mrs Bectors Food manufactures a range of products such as biscuits, breads and buns. It markets a wide variety of biscuits and breads under the flagship brand ‘Mrs Bector’s Cremica’ and the ‘English Oven’, respectively.