Bikaji Foods shares rise 5%, hit record high; here's why
Bikaji Foods stock rose 4.46% to a high of Rs 893.75 today against the previous close of Rs 853.90 on BSE.
- Aug 26, 2024,
- Updated Aug 26, 2024 3:21 PM IST
Shares of Bikaji Foods International Ltd surged nearly 5% to their record high today. The packaged foods stock rose after the company announced acquisition of a 55 percent stake in Madhya Pradesh-based snacks and frozen foods firm Ariba Foods. "This strategic investment, totalling Rs 60.49 crore, will enable Bikaji to enhance its frozen food production capabilities and expand its market presence," the company said in an exchange filing.
Bikaji Foods stock rose 4.46% to a high of Rs 893.75 today against the previous close of Rs 853.90 on BSE.
The stock opened higher today at Rs 869.70. Total 0.32 lakh shares of the firm changed hands amounting to a turnover of Rs 2.76 crore. Market cap of the firm rose to Rs 21,400 crore.
In terms of technicals, the relative strength index (RSI) of the stock stands at 68.7, signaling the stock is neither overbought nor oversold on technical charts.
Bikaji Foods shares are trading higher than the 5 day, 20 day, 30 day 50 day, 100 day and 200 day moving averages.
Deepak Agarwal, Managing Director of Bikaji Foods International said, “This strategic move not only strengthens our capacity for export growth but also supports our entry into the QSR segment. By integrating Ariba’s state-of-the-art production capabilities, we aim to enhance our frozen snacks and savouries manufacturing.”
Domestic brokerage Nuvama Institutional Equities has maintained its 'Buy' call on Bikaji. The brokerage said the acquisition is in line with the plan to raise share of frozen food revenue to Rs 200 crore over the next three–four years as against Rs 30–33 crore currently. Nuvama had assigned a target price of Rs 885 which was met in trade today.
The acquisition will raise Bikaji's backward integration and secure frozen food supply, Nuvama said. Bikaji will partly shift its current frozen snacks and savouries manufacturing to Ariba Foods’ manufacturing facility at Ujjain, Madhya Pradesh.
Bikaji Foods is a snacking company. The company is primarily involved in the manufacturing, purchase and sale of snacks food. It offers a range of products across six categories: bhujia, namkeen, sweets, papad, western snacks and other snacks. It exports snacks, sweets, frozen food, and savories to over 25 countries, including North America, Asia Pacific, the Middle East, the European Union, Africa, and the United Kingdom.
Shares of Bikaji Foods International Ltd surged nearly 5% to their record high today. The packaged foods stock rose after the company announced acquisition of a 55 percent stake in Madhya Pradesh-based snacks and frozen foods firm Ariba Foods. "This strategic investment, totalling Rs 60.49 crore, will enable Bikaji to enhance its frozen food production capabilities and expand its market presence," the company said in an exchange filing.
Bikaji Foods stock rose 4.46% to a high of Rs 893.75 today against the previous close of Rs 853.90 on BSE.
The stock opened higher today at Rs 869.70. Total 0.32 lakh shares of the firm changed hands amounting to a turnover of Rs 2.76 crore. Market cap of the firm rose to Rs 21,400 crore.
In terms of technicals, the relative strength index (RSI) of the stock stands at 68.7, signaling the stock is neither overbought nor oversold on technical charts.
Bikaji Foods shares are trading higher than the 5 day, 20 day, 30 day 50 day, 100 day and 200 day moving averages.
Deepak Agarwal, Managing Director of Bikaji Foods International said, “This strategic move not only strengthens our capacity for export growth but also supports our entry into the QSR segment. By integrating Ariba’s state-of-the-art production capabilities, we aim to enhance our frozen snacks and savouries manufacturing.”
Domestic brokerage Nuvama Institutional Equities has maintained its 'Buy' call on Bikaji. The brokerage said the acquisition is in line with the plan to raise share of frozen food revenue to Rs 200 crore over the next three–four years as against Rs 30–33 crore currently. Nuvama had assigned a target price of Rs 885 which was met in trade today.
The acquisition will raise Bikaji's backward integration and secure frozen food supply, Nuvama said. Bikaji will partly shift its current frozen snacks and savouries manufacturing to Ariba Foods’ manufacturing facility at Ujjain, Madhya Pradesh.
Bikaji Foods is a snacking company. The company is primarily involved in the manufacturing, purchase and sale of snacks food. It offers a range of products across six categories: bhujia, namkeen, sweets, papad, western snacks and other snacks. It exports snacks, sweets, frozen food, and savories to over 25 countries, including North America, Asia Pacific, the Middle East, the European Union, Africa, and the United Kingdom.