Mrs Bectors Food Specialities (MBFSL) witnessed a significant surge in its share price, reaching an all-time high of INR 772, representing an 8% rally on the BSE during Monday’s intra-day trading. The stock’s impressive performance was supported by substantial trading volumes. Over the past two trading sessions, the packaged foods company’s shares have experienced a remarkable 17% increase. This surge can be attributed to the company’s exceptional financial results for the quarter and fiscal year ending in March 2023, where they achieved record-breaking turnovers and profits.
At 10:35 AM, the stock exhibited a 4% increase and was quoted at INR 745.85, outperforming the 0.73% rise observed in the S&P BSE Sensex. Notably, the average trading volumes at the counter more than doubled on this day. A total of 920,000 equity shares were traded, encompassing both the NSE and BSE exchanges.
MBFSL holds a prominent position as a key player in the premium and mid-premium biscuits segment in North India, operating under the renowned brand ‘Cremica.’ Additionally, it has established itself as a leading player in the premium bakery sector across India, recognized by the brand name ‘English Oven.’
During the year 2023, the stock of MBFSL has witnessed an impressive surge of 84%, surpassing the modest 3% increase in the S&P BSE Sensex. The company entered the stock market on December 24, 2020. Presently, the market price of MBFSL has more than doubled, soaring by 168% compared to its issue price of INR 288 per share.
MBFSL achieved remarkable financial results for the fourth quarter of FY23, with a substantial 171% year-on-year (YoY) increase in profit after tax. The company reported a profit of INR 27.7 crore compared to INR 10.20 crore in the corresponding quarter of the previous year (Q4FY22). Additionally, MBFSL experienced a significant YoY revenue growth of 37.2%, reaching INR 346.1 crore.
In the fourth quarter of FY23, MBFSL’s reported earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by an impressive 89.5%. The EBITDA rose to INR 48.2 crore from INR 25.5 crore in Q4FY22. Furthermore, the EBITDA margin exhibited a significant improvement of 380 basis points (bps) on a year-on-year (YoY) basis, reaching 13.9% compared to the previous year’s 10.1% in Q4FY23.
According to the management, the company’s strong performance was attributed to various factors, including the optimization and premiumization of its product portfolio, the reinforcement of brand equity, the expansion of distribution touchpoints, the improvement of direct reach, and responsible pricing actions. These measures played a crucial role in mitigating the persistent impact of inflation throughout the year.
The future outlook for the packaged foods industry indicates a robust growth trajectory, driven by several factors including a large population base, growing purchasing power, heightened consumer awareness regarding hygiene and cleanliness, and a shift towards branded products. MBFSL is well-positioned to capitalize on this growth, as it operates within the premium biscuits and breads segment, aligning with consumer preferences for high-quality offerings.
Approximately 76% of MBFSL’s biscuit revenue is generated from the North and Northwest regions of India. The company holds a prominent position as one of the top three biscuit manufacturers in several states, including Punjab, Haryana, Himachal Pradesh, Jammu & Kashmir, Uttar Pradesh, Uttarakhand, and the Delhi National Capital Region. Furthermore, MBFSL has established strong partnerships with major quick-service restaurant (QSR) customers for its institutional bakery products, such as buns and breads.
