Synopsis: Mrs Bectors targets a 13% revenue CAGR to reach Rs 670 crore by FY28, driven by export growth, capacity expansion, and strong opportunities in India’s Rs 10,300 crore bread market.
This article outlines how Mrs Bectors Food Specialities Ltd aims to achieve a 13 percent revenue CAGR between FY25 and FY28. Growth is expected to be driven by accelerating exports, capacity expansion, and strengthened distribution in domestic and international markets.
With a market capitalization of Rs 5,679 crore, Mrs Bectors Food Specialities Ltd’s share closed at Rs 184.45 per share, up by 0.30 percent from its previous day’s close price. The share of this company has given a negative return of 35 percent over the last 1 years and 143 percent over the last five years.
Strong industry outlook: India’s retail market for breads and buns was valued at around Rs 6,200 crore in FY24, growing at a 6 percent CAGR from Rs 4,700 crore in FY19. The market is expected to expand further at an 11 percent CAGR to reach about Rs 10,300 crore by FY29, supported by rising urban consumption and increasing demand for packaged bakery products.
Growth is also supported by the expansion of chain QSRs, which accounted for 58 percent of the QSR market in FY24 and may rise to 60 percent by FY29, growing at an 18.8 percent CAGR. Higher demand for processed dough inputs, healthier bakery options, and deeper penetration into Tier-2 and Tier-3 cities are expected to drive industry growth.
Biscuit segment performance: The Biscuit segment continued its steady performance in Q3 FY26, generating revenue of Rs 325 crores, up from Rs 308 crores in Q3 FY25. This reflects 6 percent year-on-year growth, driven by both domestic and export sales, and marks a 21 percent increase over Q3 FY24, highlighting sustained momentum across markets.
Bakery segment growth: The Bakery segment also showed robust growth, recording revenue of Rs 198 crores in Q3 FY26, compared to Rs 175 crores a year ago. This 13 percent year-on-year increase, encompassing retail bakery and institutional sales, represents a 36 percent rise over Q3 FY24, underlining strong demand and expanding market presence.
Brokerage View
Revenue Forecast and Domestic Trends: The brokerage anticipates a revenue CAGR of around 13 percent between FY25 and FY28, supported by export momentum and capacity expansion. Meanwhile, domestic biscuits and QSR segments may remain relatively softer, with high single-digit growth expected over the next 2–3 years, reflecting stable but moderate domestic demand.
Capex and Distribution Expansion: The company is actively enhancing production and market reach. Bread production capacity is being expanded, with the bun facility operational and a new bread plant expected by June. Distribution networks are being strengthened in Mumbai, Pune, and other Maharashtra markets, alongside entry into South India, widening domestic presence.
Rating & Target: Motilal Oswal maintains a “Buy” rating on Mrs Bectors Food Specialities, with a target price of Rs 270. This implies a potential upside of approximately 48 percent from current levels, reflecting confidence in the company’s growth prospects and expansion plans.
Mrs Bectors Food Specialities Ltd was incorporated on September 15, 1995. It is a leading Indian manufacturer of biscuits, bakery products, and ready-to-eat desserts. It operates through two major brands—Cremica (biscuits, cookies, crackers, creams) and English Oven (breads, bakery, value-added products). The company is also a preferred supplier to leading QSR chains in India, including McDonald’s, Domino’s, KFC, and Subway.
Financial Highlights: The revenue from operations grew by 9 percent to Rs 497 crore in Q3 FY26 from Rs 458 crore in Q3 FY25, and EBIDT grew by 16 percent to Rs 61.3 crore in Q3 FY26 from Rs 52.8 crore in Q3 FY25. Accompanied by a net profit growth of 21 percent to Rs 33.1 crore in Q3 FY26 from Rs 27.4 crore in Q3 FY25, resulting in an EPS growth of 21 percent to Rs 1.08 per share in Q3 FY26.
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