Mrs. Bectors Food Specialities IPO – Review
Mrs. Bectors Food Specialities Limited – one of the leading companies in the non-glucose biscuits and premium bread segment in North India (according to Technopak Report) is planning to raise INR 540.54 Cr via IPO [40.54 Cr Fresh Issue + 500 Cr OFS]
Mrs. Bectors Food Specialities: Company Profile
Incorporated in the year 1995, Mrs. Bectors Food Specialities Limited is one of the leading companies in the (1) premium bakery segment and (2) premium & mid-premium biscuit segment in North India.
Mrs. Bectors Food Specialities: Business
- Mrs. Bectors Food Specialities manufactures and markets a range of products such as biscuits, bread and buns, catering primarily to retail consumers in 11 states within India as well as to reputed institutional clients pan-India.
- The Company market a wide range of biscuits under its flagship brand ‘Mrs. Bector’s Cremica’, which is one of the prominent “non-glucose biscuit brands” in North India (according to the Technopak Report).
- The Company manufacture and market bread under the ‘English Oven’ brand, which currently caters to the premium bread segment in Bengaluru, Delhi NCR, and Mumbai.
- As per the Technopak Report, ‘English Oven’ is one of the leading players in the premium bread brand in Delhi NCR, supplying approximately 120,000 loaves a day as of May 2018.
- Mrs. Bectors Food Specialities is the largest supplier of buns in India to reputed QSR chains such as Hardcastle Restaurants Private Limited, Burger King India Limited, Connaught Plaza Restaurants Private Limited, and Yum! Restaurants (India) Private Limited.
- As of June 30, 2020, the company’s bakery segment has a total of 96 products and the Biscuits segment has a total of 384 items.
Mrs. Bectors Food Specialities: Manufacturing Facilities
All of the company’s products are manufactured in-house across six strategically located manufacturing units in five different cities; (1) Himachal Pradesh, (2) Karnataka, (3) Maharashtra, (4) Punjab, and (5) UP.
Mrs. Bectors: Distribution Network
The company has a very strong distribution network of 644 distributors and 154 super-stockists supplying products through 4,58,000 retail outlets and 3,594 preferred outlets.
The Company sells its products to 23 states in India and also exports its products under its own brand name and third-party private labels to 64 countries across the world.
Company Strengths
- Established brand name with a diversified product portfolio
- A leading exporter of biscuits
- A top-rated supplier of buns to the Quick Service Restaurant industry
- Widespread and established sales and distribution network
- Latest (and automated) production process with a focus on quality control
- Experienced promoter and management team
Company Promoters:
“Anoop Bector” is the promoter of the company.
IPO Opening / Closing Date
IPO Details – Price, Minimum Bid and Other
Financial Performance
Revenue From Operations: INR 601.51 Cr (2017), INR 653.33 Cr (2018), INR 735.89 Cr (2019), and INR 707.74 Cr (2020)
Total Expenses: INR 567.39 Cr (2017), INR 609.50 Cr (2017), INR 695.94 Cr (2018), and INR 680.25 Cr (2020)
Profit (Loss) After Tax: INR 25.06 Cr (2017), INR 32.02 Cr (2018), INR 32.38 Cr (2019), and INR 28.21 Cr (2020)
Total Assets: INR 364 Cr (2017), INR 492 Cr (2018), INR 559 Cr, and INR 550 Cr (2020)
Conclusion
Considering company’s valuation and financial parameters, FinBlab recommends NEUTRAL ratings on Mrs. Bectors Food Specialities Limited IPO
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