Company was incorporated as Quaker Cremica Foods Private Limited on September 15, 1995 one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment in North India. They manufacture and market a range of biscuits such as cookies, creams, crackers, digestives and glucose under flagship brand ‘Mrs. Bector’s Cremica’. Company also manufacture and market bakery products in savoury and sweet categories which include breads, buns, pizza bases and cakes under the brand ‘English Oven’. It supplies products to retail consumers in 26 states within India and had a 12% share of Indian Biscuit export market in calendar year 2019. Company is the the largest supplier of buns in India to reputed QSR chains such as Burger King India Limited, Connaught Plaza Restaurants Private Limited, Hardcastle Restaurants Private Limited.
|Objects of the issue||
|Issue Size||Issue Size – Rs.540.54 Crore
Offer for Sale- Rs.500Crore
Fresh Issue- Rs.40.54Crore
Rs.10 Per Equity Share
|Issue Price||Rs. 286 – Rs. 288|
|Bid Lot||50 shares|
|Issue Opens:||15thDecember2020 – 17th December 2020|
|QIB||50% of Net Issue Offer|
|Retail||35% of Net Issue Offer|
|NIB||15% of Net Issue Offer|
|Shareholding Pattern||Pre- Issue||Post Issue|
|Promoters & Promoters Group||52.39||51.13|
Source: DRHP, EWAL Research
Established presence in retail and institutional bakery business.
Modern and automated production process with a focus on quality control.
Wide spread and established sales and distribution network
A leading exporter of Biscuits.
Revenue of the company increased from Rs 36.46 crore in H1FY20 to Rs 43.09 crore in H1FY21 which implies the growth in revenue of 18.20% during the period. On the other hand Company has achieved the PAT of Rs.38.88 crore in H1FY21 as against Rs.10.12 Crore in H1FY20.
Company has generated cash flow from operations of Rs.67.97 Crore in H1FY21 as against Rs.37.55 in H1FY20 which shows improvement in cashflow by 81% Y-o-Y.
Company has a negative cash flow from investing from the past 3 years as company continue to incur CAPEX Y-o-Y.
Company may incur additional debt which could lead company expose to interest rate fluctuation as some debt is variable in nature.
One of the group companies, CAFL, has incurred losses in the FY2018 and may incur losses in the future which could affect companies Consolidated financial statements.
Company do not have any long-term contracts with the QSR customers and any disruption in business operations with the QSR customers could adversely affect the business, financial condition and results of operations
Mrs. Bectors Food Specialities Ltd.is the leading company in the premium and mid-premium biscuits and has diversified portfolio in Biscuit and Bakery products. Company achieved growth in EPS of 283% in H1FY21 Y-o-Y. The company has a 1% market share in the Indian Biscuit Industry but has 12% share of Indian Biscuit export market among peers. The Indian biscuit market size is estimated to be ₹ 400.00 billion in 2020 representing 5% of the global market. Indian market is expected to grow at a CAGR of 9% till 2025 and reach ₹ 620.00 billion. This growth will increase India’s share in the global market to 6% by 2025.The company’s trailing P/E ratio is 28 times as compared to Britannia industries Ltd. which has a trailing P/E of 50.71. Thus IPO is available at cheaper valution. We recommend to subscribe IPO.
DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014
Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more
For Daily Share Market Updates, Daily debt market review, Market Research Analysis reports, Weekly Techno-Funda Report, Fundamental Analysis Report, Monthly Recommended stock Picks, Equity Trading Tips, Upcoming IPO/NFO/Bonds/Ncd’s updates & other related information Subscribe our research plan