Bikaji Foods share price lists at 7% premium. Buy, sell or hold?
Bikaji Foods
IPO was offered at a price band of ₹285 to ₹300 per equity share. (Photo: Courtesy Bikaji
Foods website)
Bikaji
Foods share price opened on BSE at ₹321, ₹21 higher from its upper
price band of ₹300 per share
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.
