BIKAJI - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Rating: 3.7

🍿 Long-Term Investment Outlook

Bikaji Foods (BIKAJI) is a high-growth FMCG player in the ethnic snacks segment. While its fundamentals are promising, the valuation is stretched, making it a moderate long-term candidate.

🔍 Valuation & Growth Metrics

P/E of 98.7 vs Industry PE of 59.1 → significantly overvalued.

PEG Ratio of 2.69 → suggests growth doesn’t justify the premium.

Price-to-Book ~13.9x → expensive for a consumer food company.

💰 Profitability & Financial Strength

ROCE (18.1%) and ROE (14.9%) → decent capital efficiency.

Debt-to-Equity of 0.17 → low leverage, financially sound.

Dividend Yield of 0.13% → minimal income generation.

📈 Earnings & Institutional Activity

Quarterly PAT up 1.32% → flat growth, not exciting.

EPS of ₹8.08 → modest earnings base.

FII holding down (-0.69%), DII holding up (+1.16%) → mixed sentiment.

📉 Technical Indicators

RSI at 57.4 → neutral zone, no strong momentum.

MACD positive → bullish crossover.

Trading above 50-DMA and 200-DMA → long-term uptrend intact.

🎯 Ideal Entry Price Zone

Entry Zone Rationale

₹720–₹740 Near 200-DMA and technical support zone

< ₹700 Strong buy zone if PEG improves and RSI dips below 45

Avoid entering near ₹768 unless earnings growth accelerates or valuation cools.

🧭 Exit Strategy / Holding Period

If you already hold BIKAJI

Holding Period: Minimum 3–5 years, assuming brand expansion and margin improvement.

Exit Strategy

Partial exit if price crosses ₹850–₹900 without ROE/ROCE improvement.

Full exit if ROE drops below 12% or PEG stays above 3.

Hold if PEG drops below 1.5 and EPS trends upward.

Would you like a comparison with Haldiram or Prataap Snacks to see how Bikaji stacks up in the ethnic snacks space? 😋

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