Stock to buy: Anand Rathi initiates coverage on Bikaji Foods shares with a ‘Buy’ call, sees 24% upside

Bikaji Foods with its strong portfolio, established distribution network backed by preferred brands are well placed to report profitability. The brokerage believes that the company’s Revenue, EBITDA and PAT is expected to grow at a CAGR of 20%, 24% and 25% respectively over FY24-26E.

Brokerage firm Anand Rathi has initiated coverage on Bikaji Foods shares, the third-largest ethnic snacks company in India. Apart from snacks, Bikaji Foods International is also the third-largest player in sweets and the second-largest papad maker pan-India backed by its extensive portfolio and strong branding.

The rise in urban culture and fast-paced lifestyles has given a boost to processed foods such as ready-to-eat products apart from regular meals for millennials, a trend which further received a thrust from consumers' taste and preferences, Anand Rathi said in a report.