Brokerage house Motilal Oswal has initiated coverage on Mrs. Bectors Food Specialities with a 'Buy' rating and a ₹260 target price. The positive outlook follows a strong first quarter for fiscal year 2027, where the company recorded 16% revenue growth. Investors are now monitoring the company's ability to reach 14% EBITDA margins by the end of the fiscal year.
Motilal Oswal has initiated coverage on Mrs. Bectors Food Specialities, issuing a 'Buy' rating and a price target of ₹260 per share. This move follows the company’s strong performance in the first quarter of fiscal year 2027, where it reported 16% year-on-year revenue growth, reaching ₹5.5 billion. The brokerage anticipates continued growth driven by the company's strong bakery segment and rising biscuit exports.
Segment Growth and Financials
Performance in the first quarter was supported by a 17.5% year-on-year increase in the bakery segment. The biscuit category also performed well, posting a 15.7% growth compared to the same period last year, with export markets showing particularly strong demand. Management has maintained its guidance for mid-teens revenue growth for the entire fiscal year 2027.
Operational profitability also showed improvement, with EBITDA margins rising by 80 basis points year-on-year to 13.1%. The company has set a specific target to reach 14% EBITDA margins by the fourth quarter of fiscal year 2027. Furthermore, net profit after tax for the first quarter grew 25.5% to ₹38.8 crore, reflecting improved operational efficiency.
Leadership and Operational Risks
In a recent corporate update, the company appointed Anshul Rastogi as its new Chief Financial Officer, effective August 7, 2026. As the company looks to scale, analysts have flagged several factors that could influence future performance. These include potential supply chain disruptions, the complexity of plant consolidation projects, and the ongoing impact of inflationary pressures on raw material costs.
Investors should note that the company's growth remains sensitive to shifts in consumer demand in both domestic and export markets. The brokerage projects a positive trajectory for revenue, EBITDA, and profit after tax between fiscal years 2026 and 2028. The key monitorable for shareholders will be the company’s success in executing its capacity expansion plans while maintaining its margin targets in a competitive environment.