Bikaji Foods shares surge 10% to hit 52-week high, here’s what’s aiding the rally

Bikaji Foods stock hit its all-time high of ₹879.2 apiece on the NSE in intraday trade on Friday, extending its gains for the fourth consecutive session. However, it soon erased some of its gains to close 2.09% higher at ₹816 apiece.

The stock has jumped over 16% in the past four days and is up 51% year-to-date. In fact, the share price has almost tripled compared with its issue price of ₹300 since its listing on exchanges in November 2022.

What’s propelling the rally in Bikaji Foods stock?

The recent surge in the share price of Bikaji Foods International Ltd is essentially an outcome of a strong earnings report presented by the company for the quarter ended June 2024 (Q1 FY24), which has triggered a lot of positive commentary around it.

In the last week of July, Bikaji Foods said that its net profit has risen over 40% in the first quarter of FY 2024-25 to ₹58 crore, with revenue jumping almost 19% to ₹572 crore.

Bikaji Foods also reported strong volume growth of over 16% for Q1 FY25. The company's management kept a positive outlook and said it expected the volume growth to be in the range of 13-15% in the medium term.

Bikaji currently has six operational manufacturing facilities, with four located in Bikaner (Rajasthan), one in Guwahati (Assam), one in Tumkur (Karnataka) held through its subsidiary Petunt Food Processors Pvt Ltd, and one contract manufacturing unit in Kolkata (West Bengal) for which it has entered into a contract manufacturing agreement on a non-exclusive basis.

In addition, the company has one facility in Mumbai to manage its Mumbai restaurant sales.