Bikaji Foods stock hovers near 52-week high after co. acquires Ariba Foods

Bikaji Foods announced the acquisition of a 55 per cent equity stake in Ariba Foods on Friday

Bikaji Foods International shares soared 4.7 per cent on the BSE on Monday, August 26, registering an intraday high of Rs 893.75 per share.

The stock was Rs 2.2 away from its 52 week high of Rs 895.95.

The counter rose after the snack food manufacturer, headquartered in Bikaner, Rajasthan, announced the acquisition of a 55 per cent equity stake in Ariba Foods on Friday.

At around 10:00 AM, shares of Bikaji Foods International were up 1.7 per cent or Rs 14.5 at Rs 868.4 per share. The market capitalisation of the company at around the same time stood at Rs 2,17,431.9 million.

 

As per the company's exchange filing, this strategic investment is worth Rs 60.49 crore and will enable Bikaji to enhance its frozen food production capabilities and expand its market presence.

Ariba Foods Private Limited is a leading Ujjain-based company specialising in snacks and frozen foods, including samosas, naans, parathas and sweets, among other things.

“This strategic move not only strengthens our capacity for export growth but also supports our entry into the QSR segment. By integrating Ariba’s state-of-the-art production capabilities, we aim to enhance our frozen snacks and savouries manufacturing,” said Deepak Agarwal, Managing Director of Bikaji Foods International.

Bikaji Foods Q1FY25 results

Bikaji Foods International reported a 40.2 per cent increase in its consolidated net profit to Rs 58.06 crore in the first quarter ended in June 2024. The company had posted a consolidated profit of Rs 41.41 crore in the April-June quarter a year ago, according to a regulatory filing from Bikaji Foods.

Its revenue from operation was up 15.24 per cent to Rs 555.12 crore in the June quarter. It was at Rs 481.68 crore a year ago.

Bikaji Foods reported volume growth of 16.2 per cent year-on-year (YoY, led by double-digit growth across categories, the company had said in its earnings report.

Total expenses of Bikaji Foods in the June quarter were up 16.08 per cent to Rs 501.32 crore. Its total income was at Rs 579.41 crore in the June quarter, up 18.8 per cent.