Anand Rathi IPO report on Mrs. Bectors Food Specialities
Mrs. Bectors Food Specialities Limited (Mrs. Bectors Food”) formally known as ‘Quaker Cremica Foods Private Limited’ was incorporated on September 15, 1995. The company is one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment in North India. The company manufactures and market a range of its biscuits such as cookies, creams, crackers, digestives and glucose under its flagship brand ‘Mrs. Bector’s Cremica’. They also manufacture and market bakery products in savoury and sweet categories which include breads, buns, pizza bases and cakes under its brand ‘English Oven’.
Valuation and Outlook
At the upper end of the IPO price band, it is offered at 28.1x its TTM earnings, demanding `16,918 million market cap, which we believe is quite reasonable. Further, its listed peers like DFM Foods and ADF Foods are currently trading at 50.5x and 24.9x respectively of its TTM earnings. We further believe that there is a good possibility of listing gains given lower valuations as compared to other listed peers. Further considering attractive valuation and strong future growth prospects in packaged biscuits we recommend a “Subscribe” rating to this IPO for the long term.
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