Mrs Bectors Food Specialities slips 10% on heavy volumes

Mrs Bectors Food has underperformed market in the past 3-6 months after reporting weak set of numbers. In comparison, the benchmark index was down by less than 4 per cent during the same period.

Shares of Mrs Bectors Food Specialities slipped 10 per cent to Rs 303 on the National Stock Exchange (NSE) on Wednesday’s intra-day trade on back of heavy volumes in an otherwise firm market.

At 09:37 am; the stock traded 7 per cent lower at Rs 315, as compared to 0.58 per cent rise in the Nifty50 index. Data shows that a total 13.53 million equity shares representing 23 per cent of total equity of Mrs Bectors Food changed hands on the NSE. However, the names of the buyers are not ascertained immediately.

Meanwhile, the stock had hit a 52-week low of Rs 278 on March 31, 2022. The stock has underperformed market in the past 3-6 months after reporting weak set of numbers. In comparison, the benchmark index was down by less than 4 per cent during the same period.

Mrs Bectors Food is one of the leading companies in the premium and mid-premium biscuits segment in North India under the brand 'Cremica'. The company is also a leading premium bakery player in India under the brand 'English Oven'.

Mrs Bectors Food reported 25 per cent year-on-year (YoY) decline in profit after tax (PAT) at Rs 16 crore in the third quarter that ended in December 2021 (Q3FY22) due to elevated raw material and packaging cost. On the other hand, revenue grew by 17 per cent YoY at Rs 263 crore, on healthy growth in biscuit segment, whereas, earnings before interest tax and depreciation and amortization (EBITDA) margins contracted 500 bps at 12.6 per cent from 17.6 per cent a year ago.

The company saw continued rising raw material and packaging costs during the quarter. "In order to offset this inflationary pressure, the company has took a further price and are also taking further price rise in March quarter (Q4FY22). However, the company has witnessed strong growth in both biscuits and bakery segment, with revenues growing by 11 per cent YoY and 29 per cent YoY in biscuits and bakery segment respectively," the management said.

Mrs. Bectors Food made stock market debut on December 24, 2020. The stock of the biscuit and bread manufacturer listed at Rs 501, a 74 per cent premium against its issue price of Rs 288 per share on the BSE. Later, it touched a record high of Rs 630 on December 28, 2020.