BIKAJI - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 How I’m Thinking About This

You’re asking for a full-spectrum fundamental analysis of Bikaji Foods International Ltd (BIKAJI), a fast-growing player in India’s packaged foods segment. I’m evaluating its financial strength, valuation metrics, business model, and technical indicators to determine its long-term investment potential and ideal entry point.

📊 Core Financials Breakdown

Profitability & Growth

EPS: ₹8.56 — modest earnings base

PAT Qtr: ₹63.2 Cr vs ₹48.4 Cr — +30.5% QoQ, and +5.97% YoY — steady growth

ROE: 16.0%, ROCE: 20.1% — strong capital efficiency

Debt-to-equity: 0.12 — low leverage, healthy balance sheet

Dividend & Cash Flow

Dividend Yield: 0.13% — minimal, reinvestment-focused

Cash flows are stable, supported by strong brand-led retail sales

💰 Valuation Indicators

Metric Value Interpretation

P/E Ratio 91.1 Highly overvalued vs industry PE of 64.6

P/B Ratio ~13.7 Significant premium to book value

PEG Ratio 2.36 Overvalued relative to earnings growth

Intrinsic Value ~₹720–₹740 Trading above fair value

Valuation is stretched, driven by brand premium and growth expectations, but not fully supported by earnings.

🍘 Business Model & Competitive Edge

Industry: Packaged foods — high growth, brand-sensitive

Moat: Strong regional brand, diversified product portfolio (bhujia, namkeen, sweets, snacks)

Catalysts

18.5% quarterly revenue growth with 11.5% profit margin

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Expansion into western snacks and export markets

DII holdings up (+1.16%) — rising domestic institutional confidence

Technical trend is bullish, supported by MACD and Bollinger Bands

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Bikaji is riding the wave of premiumization and regional brand loyalty in India’s snack market.

📉 Technical & Entry Zone

Current Price: ₹780

DMA 50/200: Trading above both — bullish trend

MACD: +6.27 — positive momentum

RSI: 49.9 — neutral zone

📌 Suggested Entry Zone: ₹740–₹760

This range offers a better margin of safety and aligns with intrinsic value and technical support.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for brand strength and FMCG tailwinds

Buy on dips near ₹750 if bullish on packaged food consumption and rural penetration

2026 Target Price: ₹810–₹899 based on technical forecasts and analyst consensus

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⭐ Fundamental Rating

3.8

1

stockpricearchive.com

2

www.marketsmojo.com

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trendlyne.com

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