Motilal Oswal Maintains Buy Rating on Mrs Bectors Food, Targets ₹270
Motilal Oswal Reiterates Buy Rating on Mrs Bectors Food
Company Overview
Mrs Bectors Food, a leading bakery and confectionery company, is focused on expanding its presence in the lower north markets, including Uttar Pradesh, Haryana, Madhya Pradesh, and Rajasthan. These regions are expected to contribute approximately 80% of the company's distribution additions.
Expansion Strategy
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The company aims to increase its outlet count to 340,000 by FY27, up from the current 340,000. This growth will be driven by the expansion of existing plants within a 400km radius. However, growth in the Punjab market may moderate due to increased competition from national players.
Investment Recommendation
Motilal Oswal maintains a BUY rating on Mrs Bectors Food with a target price of INR270, based on a discounted cash flow (DCF) analysis. The implied price-to-earnings ratio for FY28 is 34x.
Investor Takeaway
Investors should consider maintaining a buy rating on Mrs Bectors Food with a target price of ₹270.
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