Ladies & Gentlemen, Grab your Bikaji Rasgulla Tins or Bhujia Packets (Please don't actually do it)
We are going to decode Bikaji IPO - We will look at Business, Financials, valuation, and Similarity to a 2017 IPO (Bonus- some bad jokes)
Don't forget to Retweet :)
Let's go🧵👇
We are going to decode Bikaji IPO - We will look at Business, Financials, valuation, and Similarity to a 2017 IPO (Bonus- some bad jokes)
Don't forget to Retweet :)
Let's go🧵👇
1/n
About the Business -
- It is a SaaS company - Sev/Shev as a service company 😝
Ok jokes aside
- It was incorporated Oct 1995
- 3rd largest ethnic snacks company in India with an international footprint
- 2nd fastest growing company in the Indian organized snacks market
About the Business -
- It is a SaaS company - Sev/Shev as a service company 😝
Ok jokes aside
- It was incorporated Oct 1995
- 3rd largest ethnic snacks company in India with an international footprint
- 2nd fastest growing company in the Indian organized snacks market
2/n
- Products - bhujia, namkeen, packaged sweets, papad, western snacks, gift packs, frozen food, mathri range, and cookies
- More than 300 products under the Bikaji brand
- Operations - 23 states, 4 UTs
- 6 depots, 38 super-stockists, 416 direct, 1,956 indirect distributors
- Products - bhujia, namkeen, packaged sweets, papad, western snacks, gift packs, frozen food, mathri range, and cookies
- More than 300 products under the Bikaji brand
- Operations - 23 states, 4 UTs
- 6 depots, 38 super-stockists, 416 direct, 1,956 indirect distributors
3/n
- Exports - 21 countries, including countries in North America, Europe, the Middle East, Africa, & Asia Pacific.
- 7 manufacturing facilities - 4 in Bikaner, 1 in Guwahati, 1 in Tumakuru, 1 in Muzaffarpur
- Amitabh Bachchan is their brand ambassador
- Exports - 21 countries, including countries in North America, Europe, the Middle East, Africa, & Asia Pacific.
- 7 manufacturing facilities - 4 in Bikaner, 1 in Guwahati, 1 in Tumakuru, 1 in Muzaffarpur
- Amitabh Bachchan is their brand ambassador
4/n
- FY22 - largest manufacturer of Bikaneri bhujia, 2nd largest manufacturer of handmade papad, 3rd largest player in the organised sweets market
About the IPO -
- Pure OFS of 881 cr, Company gets nothing
- FY22 - largest manufacturer of Bikaneri bhujia, 2nd largest manufacturer of handmade papad, 3rd largest player in the organised sweets market
About the IPO -
- Pure OFS of 881 cr, Company gets nothing
5/n
Risks -
- Competition from Haldiram, Bikanerwala, Prataap, Balaji, ITC, Pepsico etc.
- 17% in trade receivables (annualized)
Risks -
- Competition from Haldiram, Bikanerwala, Prataap, Balaji, ITC, Pepsico etc.
- 17% in trade receivables (annualized)
6/n
Financials -
- B/S - Borrowing going up YoY but nothing major or a concern
- P&L - Has grown nicely, FY23 to be seen. Softening in RM is already there
- Cash flows - Cumulative CFO of 272.6 Cr, Cumulative FCF of 32 cr, CFO good, FCF not good.
Financials -
- B/S - Borrowing going up YoY but nothing major or a concern
- P&L - Has grown nicely, FY23 to be seen. Softening in RM is already there
- Cash flows - Cumulative CFO of 272.6 Cr, Cumulative FCF of 32 cr, CFO good, FCF not good.
7/n
Promoters -
Valuation -
- 7485 cr Market cap post listing, 1600 cr Fy22 revenue. 4.7x Price to sales
- 0.65 rs Q1FY23 EPS, let's assume 3 rs as full-year EPS. 100x P/E
- Expensive!
Promoters -
Valuation -
- 7485 cr Market cap post listing, 1600 cr Fy22 revenue. 4.7x Price to sales
- 0.65 rs Q1FY23 EPS, let's assume 3 rs as full-year EPS. 100x P/E
- Expensive!
8/n
Prataap Snacks IPO -
- IPO Came in the 2017 IPO Bull Run at a valuation of 200 P/E, Price band was Rs 938
- After more than 5 years, holding returns are 0
- Lesson - don't overpay!
Prataap Snacks IPO -
- IPO Came in the 2017 IPO Bull Run at a valuation of 200 P/E, Price band was Rs 938
- After more than 5 years, holding returns are 0
- Lesson - don't overpay!
9/n
Industry -
- In 2022, the packaged food industry was valued at approximately ₹ 4.24 trillion.
- Snacks and sweets and biscuits segments at 32.3% and 14.5% respectively of this pie.
Industry -
- In 2022, the packaged food industry was valued at approximately ₹ 4.24 trillion.
- Snacks and sweets and biscuits segments at 32.3% and 14.5% respectively of this pie.
10/n
IIFL Investment in Bikaji -
A neat return made -
Bonus - Time for some Bad Jokes -
IIFL Investment in Bikaji -
A neat return made -
Bonus - Time for some Bad Jokes -
11/n
Ok, that was it, folks. End of thread, Hope u will 'Shev' this thread and study the company properly.
Follow me at @aditya_kondawar and Stay tuned for more threads :)
Ok, that was it, folks. End of thread, Hope u will 'Shev' this thread and study the company properly.
Follow me at @aditya_kondawar and Stay tuned for more threads :)
Loading suggestions...