After 100% jump on debut, what’s next for Mrs Bectors?

After 100% jump on debut, what's next for Mrs Bectors?

Investors of Mrs Bectors Food Specialities doubled their money on the first day of the trade on Thursday. Shares of the company soared 107 per cent to Rs 595.55 on the BSE against their issue price of Rs 288. The scrip got listed at Rs 501.

Going ahead, market experts are advising investors to book partial profits in a phased manner. G Chokkalingam, Founder, Equinomics Research and Advisory, said “One should book profit in a phased manner because the rally is more of speculation and liquidity. Eventually, it will correct going ahead. This has happened with Burger King India also.”

Earlier this month, shares of Burger King India had zoomed nearly 131 per cent in its market debut.

The market capitalisation of Mrs Bectors Food stood at Rs 3,498.65 crore on the BSE. In traded volume terms, 37.81 lakh shares were traded at the BSE and over 3.70 crore units on the NSE during the day.

Dipan Mehta, Founder & Director, Elixir Equities echoed Chokkalingam’s view. In an interaction with ET NOW, he said, “Existing investors who have got some allocation should look at exiting out over the next few trading sessions.”

The initial public offer (IPO) of the company got subscribed a whopping 198 times earlier this month. The price band for the share sale was at Rs 286-288 apiece.

Mrs Bectors Food manufactures and markets a range of products such as biscuits, breads and buns. It markets a wide variety of biscuits and breads under the flagship brand ‘Mrs Bector’s Cremica’ and the ‘English Oven’, respectively.

“Investors should not confuse Mrs Bectors with Britannia. It is a B2B business. It does not have such strong brands or that kind of flavour as far as the company is concerned for it to get multiples is equivalent to FMCG businesses. Lot of their brands are clearly unknown and then there are institutional sales and exports, which are not as profitable as the branded business. Despite being around for decades, they have been able to grow the branded business,” Mehta said.

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