Mrs. Bectors Food Specialities Ltd. share price target

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Mrs Bectors Food Specialities (BECTORS IN) delivered a strong Q1FY27, with growth broadening across domestic biscuits, exports and bakery. Domestic biscuits sustained a volume-led recovery despite intense competition, while exports regained momentum as the US business returned to growth. Branded bakery remained the key growth engine, supported by rapid scale up beyond Delhi-NCR, while improving QSR demand adds another leg to growth. Near-term inflation in packaging and fuel could moderate margin progression in Q2, but pricing actions and operating leverage should drive a gradual recovery towards...

Mrs. Bectors Foods’ (MBFSL) consolidated revenue grew 16.0% YoY to INR5.5b in 1QFY27, led by strong performance in the bakery segment (+17.5% YoY; B2C – high teens and QSR – high single digit).

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With 9% y/y revenue growth (vs. 10% street estimate) and EBITDA margin of 12.7% (vs. 12.9% street estimate), Mrs. Bector Foods' Q4FY26 result was slightly below estimates on muted demand amid elevated input cost, though growth improved sequentially.

Mrs Bectors Food Specialities (BECTORS IN) Q4 revenue grew 8.9% YoY, broadly in line, supported by recovery in domestic biscuits, partly offset by muted exports due to peak US tariff impact and March softness in retail bakery due to Navratri. Management expects growth to improve in FY27, driven by low-to-mid teens growth in biscuits, while bakery should grow mid-teens on new market entry, portfolio expansion and QSR/institutional revival. We cut FY27E/FY28E earnings by 12%/8% but maintain Buy with revised TP of Rs 240 at 35x FY28E P/E,...

Mrs. Bector's Food Specialities Ltd (MBFSL) is one of India's leading manufacturers of biscuits and bakery products, established in 1978. The company operates through its two flagship brandsCremica, which includes biscuits, cookies, crackers, cream biscuits, and...

Domestic Business & Distribution: The company is focused on expanding in lower north markets (UP, Haryana, MP, Rajasthan), with ~80% of distribution additions expected from this region.

Mrs. Bectors Foods (MBFSL)’s consolidated revenue grew 8.4% YoY to INR5.3b in 3QFY26, led by strong performance in the bakery segment (+13.1% YoY, B2C – high teens and QSR – mid single digit).

With 8% y/y revenue growth (vs the Street’s 11%) and Rs582m EBITDA (Rs639m), Mrs Bector Foods’ Q1 was below estimates on muted demand amid high input costs, though growth improved q/q.

One of the leaders in premium and mid-premium biscuits (a 5% share in North India), and other bakery items mainly in north India, Mrs Bectors Food Specialties manufactures and markets biscuits under its flagship brand ‘Mrs Bector’s Cremica’ and bakery items under ‘English Oven’.

We expect Revenue/EBITDA/PAT CAGR growth of
20%/23%/29% in the FY24-FY26 period. Given the trailing history
and growth prospect of the company, we have kept the EV/EBITDA
multiple constant at 23x. This gives a price target of Rs1,510 and an
upside potential of 19% on forward EBITDA of March FY26.

Q1FY24 results were above our estimates. Mrs. Bectors continues to be on a robust revenue growth trajectory (+24% YoY in 1QFY24) led by distribution expansion in existing and new markets with broad-based growth across biscuits and bakery segment. Some moderation in growth rates is likely with price reduction by company (with input cost correction) to stay competitive and maintain the market share gain trajectory.

Q4FY23 results were above our estimates. Mrs. Bectors’ continues to report material uptick in revenue growth trajectory (+38% YoY with similar growth across all four quarters) led by distribution expansion in existing regions and pricing.

Mrs. Bectors’ continues to report significant uptick in revenue growth trajectory
led by distribution expansion in existing regions and pricing. It reported good
revenue performance (+40% YoY; +38% YoY in 9MFY23) with (1) +40% YoY growth in biscuits segment with good performance in both domestic biscuits and exports,

On a healthy and delectable growth trajectory

Consensus likes to see Mrs. Bectors’ outperformance in India B2C biscuits and absolute (good) growth in B2C Breads.

Plant visit takeaways - Baked to perfection! In our recent visit to Mrs. Bectors Food Specialities' (MBFSL) Khopoli plant (Breads and Buns facility), we got interesting insights into their manufacturing process and reasons that make MBFSL the sole supplier to leading QSR players in India. The company uses state-ofthe-art machinery with the process approved by leading QSR players. The company has indicated that demand for QSR and breads & buns has been better than pre-covid levels...