Category: FMCG

Britannia Industries Limited – Latest Q4 FY2025 Results

Britannia Industries Limited (BSE: 500825 | NSE: BRITANNIA) Latest Q4 FY2025 Results

1. Q4 FY2025 Financial Results

Metric	Q4 FY2025	Q4 FY2024	YoY Δ
Revenue from operations	₹ 4,432.19 Cr.	₹ 4,069.36 Cr.	+8.9%
Other income	₹ 63.02 Cr.	₹ 57.34 Cr.	+9.9%
Total income	₹ 4,495.21 Cr.	₹ 4,126.70 Cr.	+8.9%
EBITDA (Pre‐exceptionals)	₹ 795 Cr.*	₹ 798 Cr.*	–0.4%
EBITDA margin	~17.7%*	~19.6%*	–190 bps
Profit before tax	₹ 751.93 Cr.	₹ 734.62 Cr.	+2.4%
Profit after tax	₹ 559.13 Cr.	₹ 536.61 Cr.	+4.2%
EPS (basic)	₹ 23.25	₹ 22.35	+4.1%

* EBITDA and margin approximated from reported OPM (17.7%) and cost structure .

2. Latest Results Highlights

Resilient top‐line growth of 8.9% YoY despite commodity inflation.
Strong operating leverage maintained: OPM at 17.7%, only 190 bps below Q4 FY2024.
Net profit up 4.2% to ₹ 559 Cr., driven by tight cost controls.
Healthy cash generation: Operating cash flow for FY2025 at ₹ 2,480.7 Cr. vs. ₹ 2,573 Cr. last year .

3. Key Metrics & Financial Position

Metric	Value
Market Cap	₹ 1,29,852 Cr.
Current Price (₹)	5,391
52-Week High / Low	6,473 / 4,506
P/E (FY2025)	59.1×
P/BV	29.8× (₹ 5,391/₹ 181)
ROCE	53.0%
ROE	52.9%
Net Debt	₹ (1,247 Cr.)
Reserves & Surplus	₹ 4,332 Cr.
Dividend Yield	1.36%
Promoter holding	50.6% (unchanged, 3 yr)

4. Valuation & Dividend

Valuation premium reflects category leadership and exceptional returns on capital.
At 59× P/E, Britannia trades at ~2 SD above its five‐year average P/E of ~38× — demanding strong growth delivery.
Dividend yield of 1.36% is modest; however, the board has recommended a final dividend of ₹ 75/sh., taking full‐year dividend yield to ~1.75% .

5. CAPEX & Growth Strategy

FY2025 CAPEX stood at ₹ 374.9 Cr., focused on capacity upgrades and new line installations .
Planned FY2026–27 CAPEX of ~₹ 600 Cr., earmarked for:
- Greenfield biscuit plant in Manesar (North India).
- Enhancements in dairy & rusk facilities.
- Automation & digital supply‐chain platforms.
Strategy pillars:
1. Premiumisation – Health-oriented and high-margin products (multigrain, protein biscuits).
2. Rural & digital penetration – Deepening reach via e-commerce and direct-to-store.
3. International expansion – Scaling markets in West Asia, Africa, and Southeast Asia.

6. Credit Rating & Financial Risk

CRISIL has reaffirmed the company’s ‘CRISIL AAA/Stable/CRISIL A1+’ ratings on bank facilities & debt instruments (Sept 30, 2024) .
Leverage remains low (Net debt/EBITDA <0.4×).
Liquidity: Strong FCF conversion; unutilised working-capital lines of ₹ 1,200 Cr.

7. Management Quality & Governance

Chairman: Mr. Nusli N. Wadia – stewardship spanning three decades, emphasis on brand & innovation.
Stable promoter stake (50.6%) ensures aligned vision; professional board with diverse FMCG and finance expertise.
Statutory audit by Walker Chandiok & Co. LLP, with unmodified opinion on FY2025 results .

8. Future Growth Plans & Expansions

New SKUs: Launch of fortified-wheat & millet-based biscuits by Q3 FY2026.
Distribution: Target 10% uplift in Tier III‒V urban outlets; deepen rural reach via micro-warehousing.
M&A: Scouting acquisitions in high-growth snacking and health-foods startups.

9. Long‐Term Projections & Returns

Horizon	Revenue CAGR	EPS CAGR	Expected EPS (₹)	Total Return¹
5 years (2030)	~10%	~12%	~₹ 163	15–18% p.a.
10 years (2035)	~9%	~11%	~₹ 268	13–16% p.a.
15 years (2040)	~8%	~10%	~₹ 384	12–14% p.a.
20 years (2045)	~7%	~9%	~₹ 502	11–13% p.a.

₁Assumes reinvestment of dividends, target P/E maintains near current band.

10. Conclusion

Britannia’s dominant market position, unmatched ROCE/ROE and clear growth roadmap justify its valuation premium, albeit requiring sustained execution. For investors seeking a long‐duration play in branded foods with predictable cash flows and disciplined capital allocation, Britannia merits close consideration—recognising valuation tailwinds may moderate near term.

Disclaimer: This report is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult a qualified advisor before making any investment decisions.

May 9, 2025

Avanti Feeds: Future Growth, Expansion Plans & Long-Term Investment Projections (2025-2040)

Stock Research Report: Avanti Feeds Ltd. (Q3 FY2025)

Stock Research Report: Avanti Feeds Ltd.

Q3 FY2025 Financial Analysis & Future Projections

Published: March 12, 2025

1. Latest Results Highlights

Revenue Growth

9% YoY

Reaching ₹ 1,408 crore

Net Profit

69% YoY

₹ 1,408 million

EBITDA Margin

14.6%

Expanded 417 bps YoY

Earnings Per Share

₹ 10

Increased 87% YoY

Shrimp Feed Sales: Increased by 14% YoY, adding 15,731 MT.
Processed Shrimp Exports: Declined by 3.7%, impacted by higher shipments in transit.

2. Growth Metrics & Expense Analysis

Shrimp Feed EBITDA Margin: Improved 753 bps YoY, reaching 16.5%.
Processed Shrimp EBITDA Margin: Declined 600 bps YoY to 8.3%, affected by higher raw material costs and ocean freight rates.
Shrimp Feed Consumption in FY24: Estimated at 10.5 – 11 lakh MT.
Exports Contribution: 20% of sales, with 70% directed to the USA.

3. CAPEX & Growth Strategy

Pet Food Expansion: Entered the Indian pet food market with Avant Furst brand.
Planned Pet Food Plant: Set to launch in December 2026, targeting 3 lakh MT market.
Fish Feed Business: Conducting trials before finalizing investment.
Processing Expansion: Increasing shrimp processing capacity to 30,000 MT raw material throughput in the next 4-5 quarters.
Diversification: Exploring new export markets (Japan, Korea, EU, Middle East) to reduce dependence on the US market.

4. Long-Term Projections & Returns

Year	Revenue (₹ Cr)	EBITDA Margin (%)	EPS (₹)	CAGR (%)
2025	5,511	13.5	9.9	–
2030	8,500	15.0	16.5	10.5
2035	12,750	16.2	24.8	9.8
2040	18,200	17.0	36.5	9.2

Revenue Projection (₹ Cr)

2025

2030

2035

2040

5,511

8,500

12,750

18,200

5. Bull & Bear Case Analysis

Bull Case

Strong demand for value-added shrimp products and expansion into new global markets.
Pet food business scaling up, contributing significantly by 2027.
Stable or lower raw material costs improving EBITDA margins.
Government support through PM Matsya Sampada Yojana boosts aquaculture industry.

Bear Case

Higher raw material costs (e.g., fish meal, soybean meal) could compress margins.
US CVD tariff of 5.77% impacts shrimp exports.
Weather & Disease Risks affecting aquaculture production.
Increased competition from Ecuador and Vietnam in global shrimp exports.

6. Valuation & Investment Thesis

Current Market Cap

₹ 11,238 Cr

Stock P/E

23.4x

In line with industry average

Price to Book Value

4.46x

(₹ 824/share)

ROE / ROCE

15.1% / 20.0%

Time Horizon	Projected Fair Value
FY2026	₹ 950 – 1,000 per share
FY2030	₹ 1,500 – 1,800 per share

Investment Outlook: Moderate Buy

Strong financials, robust growth plans, but risks from tariffs and raw material volatility.

Disclaimer: This report is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence before making investment decisions.

March 13, 2025

ITC 2025-2045 Growth Plan: Share Price to Soar 6x

ITC Ltd – Complete Q3 FY2025 Performance Analysis & Future Growth Outlook

ITC Ltd – Q3 FY2025 Performance Analysis

Comprehensive Financial Results & Strategic Outlook

Executive Summary

ITC delivered a resilient Q3 performance amid a subdued demand environment and rising input costs. The diversified business—spanning FMCG, agri, and paperboards/packaging—continues to underpin a robust operating model. With a premium brand portfolio, strategic capital investments, and strong sustainability credentials, ITC is well positioned for medium‐ to long‐term growth despite inherent sector risks.

Q3 FY2025 Results Overview

Gross Revenue

₹18,953 Cr

Up 8.4% YoY

Net Revenue

₹17,726 Cr

8.6% Growth

EBITDA

₹6,197 Cr

Up 2.9% YoY

PBT

₹7,363 Cr

Up 9.5% YoY

Segmental Performance

FMCG Cigarettes

Revenue up ~8% YoY, driven by volume growth and premium innovation amid cost pressures in leaf tobacco.

FMCG Others

4% YoY growth (5.2% ex-Notebooks) through brands like Aashirvaad, Sunfeast, and Classmate, despite challenging backdrop in notebooks segment.

Agri Business

Revenue up 9.7% YoY, with robust performance in value-added exports (coffee, spices) and leaf tobacco.

Paperboards & Packaging

3.1% YoY growth through export-led initiatives and cost management, despite soft domestic demand and high Chinese imports.

Dividend & Capital Structure

Interim Dividend

₹6.50

Per Share

Market Cap

₹5,03,627 Cr

Net Debt

₹304 Cr

Reserves

₹74,015 Cr

Future Growth Plans & Expansion Strategy

Product & Brand Expansion

Continued innovation across FMCG portfolios with expanded value-added variants for Aashirvaad
Premium positioning for Sunfeast and Classmate
New product launches in personal care and packaged foods
ITC Infotech’s digital solutions expansion

Planned Capacity Enhancements

Third Ancillary Manufacturing cum Logistics Facility (AMLF)
New premium moulded fibre products plant in Madhya Pradesh
Hotels business demerger (ITC Hotels Ltd)

Sustainability & Digital Initiatives

Maintaining water positive and carbon positive status
ESG initiatives for reputation enhancement and cost optimization
ITC Infotech investments for digital capabilities

Future Financial Projections

Timeline	Projected Share Price	Growth Drivers
5 Years (2030)	₹650	Diversified revenue base, strong brand equity, ongoing cost efficiencies
10 Years (2035)	₹1,040	Margin expansion, robust cash flows, market share growth
15 Years (2040)	₹1,685	Compounded reinvestment, sustainable growth initiatives
20 Years (2045)	₹2,710	Strategic capital expenditure, competitive advantages

Capital Expenditure & Strategic Rationale

Capex Focus

Investments in modern manufacturing facilities aimed at reducing total delivered cost and improving market responsiveness. Capital allocation prioritizes digital transformation and distribution channel enhancement.

Strategic Rationale

Focus on efficiency gains and market share expansion to maintain healthy margins (current OPM ~35.0%) and generate robust free cash flows for future dividend growth and strategic investments.

Competitive Landscape & Risks

Strengths

Diversified business model reducing segment dependency
Strong brand recognition and extensive distribution network
Best-in-class sustainability practices

Challenges & Risks

Input cost volatility (edible oil, wheat, wood)
Global supply chain disruptions
Regulatory risks in tobacco segment
Increased competition from local players
Geopolitical uncertainties and forex fluctuations

Valuation & Investment Thesis

Current Price

₹403

P/E Ratio

25.4

Book Value

₹60.2

Dividend Yield

3.42%

ROCE

37.5%

ROE

28.4%

Investment Thesis

Defensive Yet Growth-Oriented: ITC’s diversified operations, strong brands, and operational efficiency make it a defensive play with attractive upside in a growth scenario.
Sustainable Expansion: Focused investments in capacity, product innovation, and digital transformation are expected to drive future profitability and shareholder returns.
Valuation Upside: DCF and relative valuation models suggest a near-term target price in the ₹420–450 range, with long-term upside driven by compounded earnings growth.
Strong Balance Sheet: Low net debt, high reserves, and robust returns (ROCE 37.5%, ROE 28.4%) indicate reasonable valuation given scale and resilience.

Key Performance Indicators

Strong market position across diverse business segments
Consistent dividend payout history
Robust cash flow generation capabilities
Proven track record in sustainability initiatives
Strategic investments in future growth areas

Return Estimates & Growth Assumptions

Based on a conservative earnings growth rate of approximately 10% p.a., supported by:

Diversified revenue streams providing stability
Strong brand equity driving premium pricing
Operational efficiencies from strategic investments
Market share gains in key segments
Sustainable competitive advantages

Disclaimer

This report is provided for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research or consult a professional financial advisor before making any investment decisions. The projections and estimates contained herein are based on various assumptions and may not materialize as expected. Past performance is not indicative of future returns.

February 26, 2025

Britannia Q3 Results: Revenue Jump, ₹500Cr Expansion, 12-15% CAGR Target

Britannia Industries Q3 FY2025 results Analysis

Britannia Industries Limited

Q3 FY2025 Results Research Report

Stock Overview

₹1,19,376 Cr.

Market Cap

₹4,956

Current Price

₹6,473 / ₹4,641

52-Week High/Low

54.9

Stock P/E

₹133

Book Value

1.48%

Dividend Yield

48.9%

ROCE

57.1%

ROE

Q3 FY2025 Financial Performance

₹4,592.62 Cr.

Revenue

↑ 7.9% YoY

₹582.3 Cr.

Net Profit

↑ 4.8% YoY

₹826.50 Cr.

EBITDA

18.0% Margin

₹24.15

EPS

vs ₹23.11 YoY

Expense Analysis

Cost of Materials Consumed ₹2,629.90 Cr. (57.2%)

Employee Benefits ₹105.85 Cr. (2.3%)

Finance Costs ₹44.56 Cr. (1.0%)

Depreciation & Amortization ₹82.38 Cr. (1.8%)

Other Expenses ₹827.60 Cr. (18.0%)

Total Expenses ₹3,874.65 Cr. (84.4%)

Strategic Growth Plans

Capacity Expansion & Capex

₹500-600 Cr. targeted investment towards:

Manufacturing automation
New production units in rural India
Dairy business expansion
International expansions

Product & Brand Strategy

New health & wellness products
Premium biscuit segment expansion
Dairy-based product innovation
Premium category focus

Digital & Rural Expansion

E-commerce platform integration
Direct distribution network
Rural market penetration
Digital sales channels

Competitive Landscape

Competitor	Revenue (₹ Cr.)	Market Share	Key Strengths
Britannia	17,580	36%	Brand loyalty, strong margins, rural reach
Parle	16,200	34%	Mass-market dominance, affordability
ITC	10,500	20%	Strong advertising & premium offerings
Nestlé	17,500	10%	Diversified portfolio, dairy dominance

Key Risks & Challenges

Commodity Inflation

Wheat, milk, and sugar price fluctuations may pressure margins

Cost-push inflation could lead to pricing challenges

Regulatory Risks

FSSAI regulations on sugar & fat content

Increased taxation on packaged food items

Competition

ITC’s aggressive marketing in premium biscuits

Parle’s deep penetration in rural India

Market Risks

Currency & export risks in international markets

Consumer demand slowdown impact

Valuation & Investment Thesis

54.9x

P/E Ratio

Premium vs. Industry Avg ~40x

37.3x

Price-to-Book (P/B)

Reflects high ROE

~35x

EV/EBITDA

Premium due to margins

1.48%

Dividend Yield

Stable payout policy

Investment Rationale

High ROE (57.1%) & ROCE (48.9%) indicating efficient capital utilization
Consistent earnings growth with sales growth of 8.5% CAGR (3Y avg)
Resilient business model with market leadership and strong pricing power
Strategic expansion into dairy & bakery segments as future growth drivers
Defensive FMCG stock providing steady earnings across economic cycles

Final Verdict: HOLD with Positive Bias

Premium

Valuation

P/E 54.9x

5-8%

Short-Term Growth

Stable margins

12-15%

Long-Term CAGR

3-5 years outlook

₹4,500-4,700

Accumulation Range

Buy on dips

Additional Performance Metrics

5.12%

Sales Growth (YoY)

0.72%

Profit Growth (YoY)

8.48%

Sales Growth (3Yrs)

4.89%

Profit Growth (3Yrs)

50.6%

Promoter Holding

24.1 Cr.

No. of Equity Shares

₹2,754 Cr.

Debt

₹3,186 Cr.

Reserves

February 7, 2025

Dabur Q3 FY25: 19% global Growth Ayurveda Expansion

Dabur India Limited – Q3 FY2025 Results

Market Metrics

Market Cap: ₹95,627 Cr

Current Price: ₹539

52W High/Low: ₹672 / 489

Key Ratios

P/E: 54.1

Book Value: ₹58.5

Dividend Yield: 1.02%

Returns & Growth

ROCE: 22.3%

ROE: 19.2%

Sales Growth (3Yrs): 9.06%

Financial Position

Debt: ₹1,752 Cr

Reserves: ₹10,185 Cr

Promoter Holding: 66.3%

Q3 FY2025 Performance Overview

Metric	Q3 FY25	Q3 FY24	YoY Growth
Revenue from Operations	₹3,355 Cr	₹3,255 Cr	+3.1%
Operating Profit	₹682 Cr	₹668 Cr	+2.1%
Operating Margin	20.3%	20.5%	-20 bps
Net Profit	₹522 Cr	₹514 Cr	+1.6%
A&P Spend	6.8%	7.5%	-70 bps

Segment Performance Analysis

Domestic Business (₹2,448 Cr, +1.4% YoY)

Foods & Beverages (48.2% of Sales)

Revenue: ₹1,110 Cr
Growth: +30% YoY
Strong performance in Hommade & Badshah spices
Beverages segment declined 10.3% due to weak festive demand

Healthcare (37.9% of Sales)

Revenue: ₹872 Cr
Health supplements declined 3.4%
Chyawanprash maintained market leadership
OTC & Ethical category remained flat

Home & Personal Care (11.8% of Sales)

Revenue: ₹273 Cr
Home Care: -10.3% YoY
Personal Care: +2.7% YoY
Market share gains in Oral Care

International Business (25% of Sales)

Revenue: ₹847 Cr (+18.9% CC Growth)
Egypt: +54.6% growth
Turkey: +28.2% growth
Bangladesh: +21.6% growth
MENA market: +17.5% growth

Strategic Initiatives & Capex Plans

Capital Expenditure

Expansion of Badshah spices production capacity
Investment in Ayurvedic product portfolio
Modernization of manufacturing facilities

Branding Efforts

Rural activation programs
Festival season campaigns (Kumbh Mela, Durga Puja)
Celebrity endorsements and digital marketing

Market Penetration Strategy

Focus on premium healthcare segments
Expansion of ayurvedic product range
Strengthening rural distribution network

Competitive Landscape & Risks

Key Competitors

Hindustan Unilever (HUL)
ITC Limited
Marico

Risk Factors

                    Inflationary pressures on raw materials
Increased competitive pricing pressure
Unpredictable weather impacting seasonal products
Currency fluctuations in international markets

                

Valuation & Investment Thesis

Current Valuation Metrics

Metric	Value	Industry Avg
P/E Ratio	54.1x	~45x
Price/Book	9.2x	~8x
Dividend Yield	1.02%	~1.5%

Growth Projections

Sales CAGR (3-5 Years): 8-10%
PAT CAGR (3-5 Years): 6-8%
Target Price (1 Year): ₹590-₹610

Investment Recommendation

                    Long-Term Buy Recommendation
                    Strong brand moat and rural resilience
Stable FMCG exposure with defensive characteristics
Premium valuation justified by market leadership
Robust international growth prospects

                

                    Near-Term Considerations
                    Current P/E of 54.1x above historical averages
Moderate earnings growth trajectory
Margin pressures from input costs
Competitive intensity in key segments

                

Growth Drivers & Future Outlook

Key Growth Catalysts

Rising demand for Ayurvedic & natural products
Expanding rural reach and distribution
Premiumization in healthcare & spices categories
Strong international market expansion

Digital Initiatives

E-commerce channel optimization
Direct-to-consumer (D2C) platforms
Digital-first product launches
Enhanced online customer engagement

Financial Projections

Metric	FY2025E	FY2026E
Revenue Growth	8-10%	10-12%
EBITDA Margin	20-21%	21-22%
PAT Growth	6-8%	8-10%

Management Commentary & Strategic Focus

Key Strategic Priorities

Portfolio premiumization and innovation
Cost optimization and efficiency initiatives
Market share gains in core categories
International business expansion

Innovation Pipeline

New product launches in premium Ayurvedic segment
Extension of Badshah spices portfolio
Enhanced health supplements range
Modern format personal care products

Technical Analysis

Price Trends

Current Price: ₹539
52-Week Range: ₹489 – ₹672
200-Day Moving Average: ₹545
Support Levels: ₹520, ₹500
Resistance Levels: ₹560, ₹580

Conclusion

Dabur India continues to demonstrate resilience in a challenging market environment, supported by its strong brand portfolio and diversified presence across categories. The company’s focus on premium segments, rural expansion, and international growth presents significant opportunities for long-term value creation.

                Key Investment Considerations
                Strong brand equity in natural and Ayurvedic segments
Robust international business growth
Premium valuation reflecting market leadership
Potential for margin expansion through premiumization

            

Disclaimer: This report is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. Past performance is not indicative of future returns. The information contained herein is believed to be reliable but cannot be guaranteed for completeness or accuracy.

February 2, 2025

Parag Milk Foods Q3 FY2025: 150 Cr CAPEX Plan, and Premium Dairy Expansion”

Parag Milk Foods Q3 FY2025 Analysis | Complete Stock Research Report

📊 Stock Overview

Market Cap	₹2,024 Cr
Current Price	₹170
52-Week High/Low	₹290 / ₹146
Stock P/E	19.8
Book Value	₹80.6
Dividend Yield	0.30%
ROCE	10.9%
ROE	10.5%
Debt	₹648 Cr
Reserves	₹843 Cr
Promoter Holding	42.6% (+1.86% in 3 years)
No. of Shares	11.9 Cr

📈 Q3 FY2025 Financial Performance

Revenue

₹868.81 Cr (+10.5% YoY)

Net Profit

₹34.18 Cr

EBITDA Margin

7.12%

9M FY25 PAT

₹102 Cr

Growth Metrics

Sales Growth (YoY)	4.91%
Profit Growth (YoY)	-0.69%
3-Year Sales Growth CAGR	19.4%
3-Year Profit Growth CAGR	60.6%
Quarterly Sales Variation	10.5%

🚀 Future Growth Plans & Expansion Strategy

1. Product Innovation & Premiumization

Focus on high-margin value-added dairy (cheese, whey protein, UHT milk)
Expansion of premium segment under “Pride of Cows”
Growth in B2B (HoReCa), retail, and institutional sales

2. Capital Expenditure & Infrastructure

₹150 Cr capex planned for FY2025-26
Increasing cheese production capacity
Automation & supply chain optimization
Farm-to-table milk procurement investments

3. Geographical & Export Expansion

Expansion in Tier-2 & Tier-3 cities
Growth in Southeast Asia & Middle East exports
Strengthening modern trade and D2C channels

4. Digital & Retail Strategy

E-commerce partnerships (Amazon, BigBasket, Blinkit)
Private label partnerships expansion
Enhanced digital marketing initiatives

🏆 Competitive Landscape

Company	Market Position	Focus Area
Amul	Market leader	Mass dairy products
Nestlé India	Strong R&D	Premium dairy
Britannia	Expanding dairy footprint	Cheese, flavored milk
Hatsun Agro	South India dominance	Dairy & ice cream
Heritage Foods	Regional player	Andhra Pradesh & Telangana

📉 Key Risks & Challenges

Milk Procurement Cost Volatility
High Debt Burden (₹648 Cr)
Regulatory Risks in dairy pricing
Intense Competition from Amul & MNC players
Price wars with competitors

📈 Valuation & Investment Thesis

Current P/E

19.8x

Price-to-Book

2.1x

1-Year Target

₹210-₹230

3-Year Target

₹300+

Investment Outlook

Short-Term: Neutral (due to rising costs, competitive pressures)
Long-Term: Positive (brand strength, premium dairy segment, export growth)

Potential Upside Triggers

Expansion in cheese & whey protein markets
Improved supply chain efficiency reducing costs
Debt reduction enhancing profitability

Potential Downside Risks

Raw material price fluctuations
Increased competition from Amul, Nestlé, Britannia
Regulatory interventions on dairy product pricing

🎯 Final Verdict

Current Stance: Hold for long-term investors, Buy on dips (<₹160)

Target Investors: Growth & FMCG investors looking for premium dairy exposure

High-Risk, High-Reward Play:

✅ If cost optimization & premiumization succeed, expect multi-year rerating
❌ If competition & debt burden persist, stock may remain range-bound

January 31, 2025

Bombay Super Hybrid Seeds: 6200 Cr Projection by FY28 – Agritech Multibagger Unveiled

Bombay Super Hybrid Seeds Ltd – Comprehensive Stock Research Report

Bombay Super Hybrid Seeds Ltd – Q3 Results Report

Value pick Multibagger Stock for long term investment

bombaysuperseeds.com NSE: BSHSL

Investment Highlights

                            Market Cap: ₹1,492 Cr
                        
                            Current Price: ₹142
                        
                            52-Week High/Low: ₹266 / ₹129
                        
                            Stock P/E: 58.9
                        
                            Book Value: ₹8.71
                        
                            ROCE: 23.9%
                        
                            ROE: 33.0%
                        
                            Dividend Yield: 0.00%

                        Key Milestones
                        Product Portfolio: From 30 to over 120 products (2018-2023)
Infrastructure: 3,00,000 sq. ft. world-class R&D facilities
Fully automated seed processing unit

                    

Business Overview

Bombay Super Hybrid Seeds Ltd (BSHSL) operates in India’s agricultural sector with a strong focus on edible oilseeds like groundnut and sesame. Founded by Mr. Arvindkumar J. Kakadia, BSHSL has expanded to cover 14 major states with a depot presence in 8 states and a growing international footprint.

Growth Drivers

Aggressive R&D Expansion

₹1 Cr investment in breeding high-yield varieties
Collaborations with ICRISAT, CIMMYT, IARI
Focus on biofortified crops and climate-resilient seeds

Revenue Growth Trajectory

Revenue CAGR ~25%: ₹3,000 Cr (FY25) to ₹6,200 Cr (FY28)
Consistent 3-year sales growth of 14.5%

Technological Innovation

Advanced Technologies

Buhler’s advanced sorting technology
Eco-friendly seed cold storage (10,000 metric tons)

Crop Diversification

Groundnut: Core contributor (~55% revenue)
Growing contributions from cumin, gram, soybean
Recent entry in hybrid maize, paddy, exotic vegetables

Financial Highlights

                            H1FY24 Revenue: ₹15,042.42 Lakh
                        
                            YoY Growth: 26%
                        
                            PAT (H1FY24): ₹1,220.65 Lakh
                        
                            EBITDA Margin: 10.51%

Product-Wise Revenue Contribution (H1FY24)

Product	Contribution
Groundnut Seeds	54.7%
Gram	11.88%
Wheat	4.88%
Soybean	2.77%
Cumin	6.89%
Other Agricultural Products	16.49%

Historical Financial Performance

Financial Year	Revenue (₹ Cr)	PAT (₹ Cr)	EBITDA Margin (%)
2019	77.08	2.08	6.26
2020	103.48	2.66	6.09
2023	227.91	16.78	9.71
H1FY24	150.42	12.21	10.51

Strategic Capital Expenditure

The planned ₹1 Cr R&D expenditure focuses on:

High-Yield Varieties: Pearl millet with improved disease resistance
Niche Products: Anti-cancer Korean cabbage and biofortified crops
Exotic Crops: Screening of exotic germplasm in vegetables and flowers

These initiatives align with the company’s strategy to innovate in high-margin, health-focused seed products and meet emerging market demands.

Competitive Landscape

Strengths

Extensive product portfolio
Strong market penetration
Global research partnerships
High ROE (33%)
Low debt-to-equity ratio

Weaknesses

High stock valuation (P/E 58.9)
Limited direct shareholder returns
Zero dividend yield

Threats

Vulnerability to monsoon patterns
Competition from domestic players
Pressure from global MNCs

Valuation Estimate

Using a forward P/E of 40x and FY25 estimated PAT of ₹80 Cr, we arrive at a target price of ₹152. While growth remains strong, the current valuation suggests limited upside in the near term.

Investment Thesis

Bombay Super Hybrid Seeds Ltd is well-positioned for sustained growth, driven by its robust R&D capabilities, diversified portfolio, and expanding geographical footprint. While its high valuation and dependency on monsoon conditions pose risks, long-term investors seeking exposure to India’s agritech sector may find value in its growth story.

Geographic Expansion

Strengthened distribution network covering 14 Indian states
Increasing export presence backed by international trade licenses
Participation in global seed trade events

Balance Sheet Highlights

Debt Management

Total Debt: ₹37.4 Cr

Significantly reduced from previous years

Equity Position

Reserves: ₹80.9 Cr

Showcasing strong equity growth

Disclaimer

This report is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research or consult a financial advisor before making investment decisions.

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