The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Bector Food Specialities IPO– Mrs. Bector’s Food is one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment. Company is largest supplier of buns for QSR restaurants in India.
Business — Sells Biscuits, Bakery products, Frozen Products. And a contract Manufacturer for Oreo and Bournvita biscuits
Offer purpose — Offer for sale (540cr) including fresh issue of 40 cr. for expansion and general purposes
Key Service domains – Biscuits domestic 43% of total sales, 24% exports of total sales.
Key export regions are Africa and North America. Total 64 countries where export is done
There are cases of non-compliance against certain legislations in the past by group company and some disciplinary actions as well
Highly competitive industry with company having only 1% market share. Margins can reman depressed for quite long time putting strain on cash flows
Low shelf life of certain products
Company do not have any long term supply agreements with any of their QSR customers is a strange thing and deals on day to day basis requirement for bns, bakery and frozen products
One of the lowest risk but having high business impact is focus on nutritional value of products which can hamper sales in future
A leader in biscuits and bakery segments in North India with well-diversified product portfolio.
Major food certifications i.e. BRC, USFDA, and FSSC.
Modern production process, Strong sales and distribution network.
Strategically located in proximity to target markets which minimizes freight and logistics related expense and time
QSR is thriving industry and consumption food business will gain. QSR CAGR expected to grow >20% for next 4-5 yrs
Proxy play to QSR story, so should do well in coming years
Profit making company but PAT going down from last three years
Focusing on growth in premium biscuits and bakery segment to improve margin having high competition
As compared to peers, valuations looks ok but needs consistent review
Should we apply?
People can subscribe looking at growth prospects
Listing day may see good gains. Recommended to sell if getting 10-30% gains on listing day
One can also hold long and review holdings with each quarter earnings
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