Bikaji Foods share price lists at 7% premium. Buy, sell or hold?

Market


Bikaji Foods shares have today debuted on Dalal Street at a slight premium. Shares today opened on BSE at 321, delivering 7 per cent listing premium to allottees.  After opening at 321, Bikaji shares surged further and made intraday high of 335 apiece. In other major listing today, Medanta hospitals chain operator Global Health shares made a decent debut on Dalal Street after listing at 398.15 apiece on BSE, delivering around 18 per cent listing premium to the allottees.

Advising long term investors to buy and hold Bikaji Foods shares, Pravesh Gour, Senior Technical Analyst, Swastika Investmart said, “Bikaji Foods share has debuted at 7 per cent over its issue price. The company’s muted listing but the issue had received a good response from investors on both the institutional as well as Retail side. Nevertheless, the company’s margins are on the declining side and a P/E valuation of 95.2 looks expensive. Therefore, we advise only aggressive investors should consider making a long-term commitment to the company. Those who applied for listing gains can maintain a stop loss of 310 levels.”

Manoj Dalmia, Founder & Director at Proficient equities said, “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. It has posted declined margins for FY22 on higher sales in line with the general trends of the industry. Sustainability of such margins going forward amidst stiff competition raise concerns. It has subscribed 26x in total where investors can expect some listing gains and long term investors can park their funds in this issue.”

Bikaji Foods IPO was subscribed whopping 26.67 times whereas its retail portion was subscribed 4.38 times. Its QIB portion got subscribed 80.63 times.

On Bikaji Foods shares, Ravi Singhal, CEO at GCL Securities said, “The issue was highly priced and it may come down towards 270 to 260 apiece levels after the profit-booking trigger. So allottees are advised to book profit and exit and re-enter at around 260 to 270 apiece levels for one year target of 385 to 400 levels.”

He said that those who missed to get Bikaji Foods shares during share allotment can also buy this stock in 260 to 270 range for one year target of 385 to 400 apiece.

Bikaji Foods International Ltd is one of India’s largest fast-moving consumer goods brands with an international footprint, selling Indian snacks and sweets. Founder of Bikaji Foods International Shiv Ratan Agarwal is the grandson of Haldiram’s founder Gangabishan Agarwal. Shiv Ratan Agarwal founded the company in 1986. It was originally incorporated as Shivdeep Industries Ltd. In 1993, the company’s name was changed to Bikaji Foods.

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