What is the future of Bikaji Foods? | fundamental analysis of Bikaji Foods ft Mr. Sunil Shah

"the company intends to increase it to three and a half lakh touch points in the next 18 months."

"Now they want to increase it from 105000 to 150000 touch points in the focus state."

"in the focus states they want to increase their identification reach as I told earlier their target is from 278000 to 350000"

"over the next 18 months grow more of the distribution network and there after over the next three years and so focus more on the healthy snacks"

"This is going to come at least not before the next two years. So, in the next two years, we will see the distribution playout and post which we will see all these products of frozen food and healthy snacks."

"So, if Indian companies are having a subsidiary there which can be even a distribution platform, then selling and capturing That market will be relatively easier, so Bikaz Foods International and its board would put it in one of the very few people who are preparing the company today by thinking ahead, with exactly the same thought process, with the incorporation of this subsidiary and the formula that is going to be implemented, so that Indians in the US, where they are earning huge revenue today by exporting, do not face that problem tomorrow, that is the thought process with which they have started this to prepare themselves, so that they do not lose out on the US market"

"the stock is trading at very very high valuation in the market, that to my mind is the big risk, it is trading at a multiple of 70"

"if tomorrow there are US policy changes or the market gets a shock from somewhere, then these high P stocks can also correct by a significant amount."

"The second risk which can happen is the sudden increase in these pulses and edible oil prices, like it happened in the third quarter of last year. So if this edible oil price and pulse price increase, then the ability of the company to really go about increasing the end product price in a very very tough competition situation can be a risk that we need to monitor."

"So, there are 278 distribution points which they are targeting to reach 350,000 in the next 18 months. So, we need to see every quarter the incremental touch points which are happening. So, that is the first data point that we will monitor."

"The second data point that we need to monitor is the EBITDA margin of 13%. If the EBITDA margin of 13% is correcting, then we need to assess what are the reasons or are there any structural reasons due to which they are permanently reducing the margin."

"Also, the revenue growth rate. So, to my surprise, because they are expanding and they are doing all this, the revenue growth rate should be at least 20 percent on a year-on-year basis."