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Momentumisers: Mrs Bectors Food in focus; here’s why

In the last 12 months, the stock of Mrs Bectors Food Specialities is down almost 2.5 percent this is compared to both midcap as well as smallcap indices which have gained around 25-28 odd percent. So it has been an underperformer but saw big momentum on Friday, April 1.

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By Mangalam Maloo  Apr 4, 2022 1:34:39 PM IST (Published)

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In the last 12 months, the stock of Mrs Bectors Food Specialities is down almost 2.5 percent this is compared to both midcap as well as smallcap indices which have gained around 25-28 odd percent. So it has been an underperformer but saw big momentum on Friday, April 1.

It's down 27 percent from its all-time high as well.
The company make biscuits under the Cremica brand and while all key inputs of the biscuits - wheat, palm oil and sugar have seen big inflation; they have two parts of the business that have a cost-push or cost pass which is supplying buns to QSR like Burger King, McDonald's as well as KFC and they contract manufacture Oreo and Chocobakes for Mondelez, which is Cadbury.
So these parts of their business are relatively immune to inflation which may be the reason why the stock saw a big move.
Watch the accompanying video of CNBC-TV18’s Mangalam Maloo for more details

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