Result Note on Gabriel India, Bikaji Foods International, Asian Paints , Bectors Food Specialities by Asit C. Mehta Investment Interrmediates Ltd
Gabriel India Ltd
* On a standalone basis, we expect Gabriel India to report revenue growth of 16.0% YoY/ 8.8% QoQ to Rs 10,714 mn. Strong performance of the auto sector in the quarter, along with a ramp-up in revenues from MMAS will drive growth. Revenue growth will continue to exceed industry growth owing to the ramp-up of supply to new models and premiumisation.
* We expect EBITDA margin of 9.0% (+46 bps YoY/ 13 bps QoQ), leading to EBITDA of Rs 967 mn (+22.1% YoY/ +10.4% QoQ). Margins to see some sequential uptick due to the cost optimisation in the Core 90 program for the core standalone business and gradual margin improvement in the newly acquired MMAS business.
* Net Profit is estimated to be Rs 617 mn, +17.1% YoY/ 10.9% QoQ.
* On a consolidated basis, including the sunroof business, we expect Revenue/EBITDA/PAT growth of 17.0/19.4/16.9% YoY, respectively.
We have a HOLD rating on the stock with a target price of Rs 1,010 based on SOTP valuation. We will review our price target and rating post the results and conference call.
Bikaji Foods International Ltd
* Bikaji’s Q2FY26 revenues saw better performance as compared to our estimates, while profitability was largely in line. Reported revenues were 3.1% higher than estimated, while EBITDA/ Adj. PAT were largely in line (0.6/0.7% deviation)
* Volume growth was reported at 10.8%, better than our estimate of 8%.
* Revenue growth was driven by packaged sweets segment which grew 32.3%. Except western snacks, all other categories witnessed growth. Exports grew robust 77.3% YoY. Retails stores as well saw 32% sequential growth and store count stands at 21 (vs 5 in H1FY25.
* EBITDA margins expanded 63 bps YoY, aided by gross margin expansion partly offset by increased employee and other expenses
* Reported PAT at Rs 798 m’n was down 3.2% YoY due to exceptional loss of Rs 44 mn on account of fire incident at a contract manufacturer’s facility.
The stock is currently trading at 62.4/49.0/42.1x FY26/27/28E EPS. We have a BUY rating on the stock with a target price of Rs 890 based on 56x to H1FY28E EPS of Rs 15.9. We will review our price target and rating post the results and conference call.
Asian Paints Ltd
* We expect to see gradual improvement in performance for APNT, with a revenue increase of 2% YoY in the quarter vs flat performance in the last quarter. We expect the growth to be backed by volume growth of ~6% YoY, with the negative pricing impact reducing to 4.0% YoY (from ~5% in the previous quarter). Extended rainfall is expected to continue to weigh on performance, though APNT is likely to see slightly better growth compared to its peers due to a weaker base.
* We expect EBITDA margins to improve by 45 bps on a YoY basis at 15.9%, aided by benign input prices and volume improvement. Sequential contraction of 229 bps is expected due to seasonally adverse mix.
* We expect EBITDA of Rs 13,011 mn (+5.0% YoY/-19.9% QoQ) and Adj. PAT of Rs 8,618 mn (+4.7% YoY/ -21.6% QoQ). Reported PAT growth will be higher due to one-off costs in the base.
The stock is currently trading at 57.2/49.1/43.2x FY26/27/28E EPS. We have a BUY rating on the stock with a target price of Rs 2,775, based on 48x to H1FY28E EPS of Rs 57.8. We will review our price target and rating post the results and conference call.
Mrs Bectors Food Specialities
* For Q2FY26E, we expect Bectors’ revenues to grow at 7.8% YoY/ 13.1% QoQ to Rs 5,352 mn, supported by mid-teen growth in the bread & bakery segment and gradual recovery in the biscuit segment. GST 2.0 related disruptions may have some impact on performance.
* EBITDA margins are expected to contract by 116 bps YoY to 13.0%, but sequentially improve by 72 bps due to moderating RM prices, partially offset by impact of the GST transition. EBITDA is estimated at Rs 698 mn, down 1.0% YoY but higher by 19.8% sequentially.
* PAT is estimated to be at Rs 373 mn, declining by 4.2% YoY due to higher depreciation costs along with fall in EBITDA.
The stock is currently trading at 50.8/39.5/31.1x FY26/27/28E EPS. We have a BUY rating on the stock with a target price of Rs 1,695 based on 45x to H1FY28E EPS of Rs 37.5. We will review our price target and rating post the results and conference call.
Above views are of the author and not of the website kindly read disclaimer
